Senate Banking Committee Chair Tim Johnson (D-SD) and Ranking Member Mike Crapo (R-ID) are deeply concerned over reports that company filings electronically submitted to the SEC are made available to private subscribers before the general public. In a letter to SEC Chair Mary Jo White, they said that this disparity raises significant concerns regarding the management of the data systems that provide investors with access to important and potentially market-moving information. The oversight Senators asked the SEC for an explanation of the steps being taken to eliminate this disparity and prevent this issue from happening in the future. In addition, the SEC is asked to outline what it has previously done to address similar issues.
Ensuring a fair marketplace is one of the SEC’s most important objectives, emphasized Chairman Johnson. He urged the SEC to quickly investigate this timing disparity for company filings and take the necessary steps to eliminate it. Senator Crapo noted that the SEC is tasked with protecting investors and maintaining fair and efficient markets. Thus, it is important that the agency, arguably more than anyone, ensures that its systems do not provide preferred access to certain parties rather than the broader market.