Stein calls for new SEC data strategy
01 November 2016 Michigan
Image: Shutterstock
The US Securities and Exchange Commission’s (SEC) Kara Stein has renewed calls for the creation of an Office of Data Strategy to overhaul the SEC’s “ad hoc” data collection and analysis strategies going forward.
Speaking at the the Big Data in Finance Conference in Michigan, commissioner Stein explained: “For some time, I have asked that the SEC develop an executive team responsible for creating and overseeing such an office.”
“Data and technology present tremendous opportunities and benefits—but they have also opened the door to new and exceedingly complicated risks. Data is distributed across a range of electronic platforms, complicating the task of monitoring and examining market participants.”
The new office would coordinate the SEC’s data strategy, including how the commission collects, manages and utilises the increasingly large quantities of reported transaction data. Stein has also previously said that a chief data officer would be needed to run the department.
“This is a critical next step in turning our ad hoc growth as data users into a deliberate plan. The office could lend its expertise to, and would coordinate with, our policy, exam, and enforcement offices. Having a data strategy, and a team dedicated to it, is especially important in light of our limited resources,” Stein continued.
The SEC’s data collection requirements were expanded earlier in October with the adoption of changes to modernise and enhance reporting and information disclosure among registered investment companies, as well as to enhance liquidity risk management in mutual funds and exchange-traded funds.
In particular, these changes aim add new disclosures in fund registration statements relating to securities lending activities.
Affected funds may have to divulge income and fees from securities lending, and the fees paid to securities lending agents in the prior fiscal year.
Speaking at the the Big Data in Finance Conference in Michigan, commissioner Stein explained: “For some time, I have asked that the SEC develop an executive team responsible for creating and overseeing such an office.”
“Data and technology present tremendous opportunities and benefits—but they have also opened the door to new and exceedingly complicated risks. Data is distributed across a range of electronic platforms, complicating the task of monitoring and examining market participants.”
The new office would coordinate the SEC’s data strategy, including how the commission collects, manages and utilises the increasingly large quantities of reported transaction data. Stein has also previously said that a chief data officer would be needed to run the department.
“This is a critical next step in turning our ad hoc growth as data users into a deliberate plan. The office could lend its expertise to, and would coordinate with, our policy, exam, and enforcement offices. Having a data strategy, and a team dedicated to it, is especially important in light of our limited resources,” Stein continued.
The SEC’s data collection requirements were expanded earlier in October with the adoption of changes to modernise and enhance reporting and information disclosure among registered investment companies, as well as to enhance liquidity risk management in mutual funds and exchange-traded funds.
In particular, these changes aim add new disclosures in fund registration statements relating to securities lending activities.
Affected funds may have to divulge income and fees from securities lending, and the fees paid to securities lending agents in the prior fiscal year.
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