Skip to main content Accessibility help
×
Home
  • This chapter is unavailable for purchase
  • Print publication year: 2014
  • Online publication date: December 2013

12 - Microprudential supervisory data in the USA: Securities and derivatives

from PART III - REGULATORY DATA

Summary

Introduction

This chapter provides an overview of microprudential data collection and supervision in the securities industry. The origins and development of securities regulation can be found elsewhere in this Handbook. Securities regulation was enacted in the USA to protect individual investors from unfair practices and potential abuses in the public markets, with the foundation of that protection being transparency in the markets, through mandatory disclosures. The concept is two pronged: one, that the act of disclosure itself makes the one disclosing more honest, and two, that by having relevant information available, an investor can make a more informed decision before making an investment. The model developed by the USA has been followed in many other countries.

The disclosure requirements ensure that there is a wealth of data available to investors and to the regulators themselves, who are responsible for enforcing the laws and maintaining fair and orderly markets. Crises and breakdowns in the markets have led to new legislation to ensure the continued transparency that is the hallmark of the capital market system; for example, in 2000, after it was revealed that companies were providing analysts and other insiders with information that investment banks were then sharing selectively with their clients, Regulation FD was enacted to require issuers to simultaneously disclose material information to analysts, large investors and the public.

Related content

Powered by UNSILO
Bratton, William W. and Adam J., Levitin, 2012, A Transactional Genealogy of Scandal: From Michael Milken to Enron to Goldman Sachs, August 13, http://ssrn.com/abstract=2126778
CCH Editorial Staff, 2010, Dodd-Frank Wall Street Reform and Consumer Protection Act: Law, Explanation and Analysis, CCH, http://onlinestore.cch.com/default.asp?ProductID=7342
Commodity Futures Trading Commission (CFTC), 2012a, Commitments of Traders, Internet resource, accessed May 7, 2012, www.cftc.gov/MarketReports/CommitmentsofTraders/index.htm
Commodity Futures Trading Commission (CFTC), 2012b, Index Investment Data, Internet resource, accessed May 7, 2012, www.cftc.gov/MarketReports/IndexInvestmentData/index.htm
Commodity Futures Trading Commission (CFTC), 2012c, Technology Advisory Committee, Internet resource, accessed June 22, 2012, www.cftc.gov/About/CFTCCommittees/TechnologyAdvisory/index.htm
Commodity Futures Trading Commission and Securities and Exchange Commission (CFTC-SEC), 2010, Findings Regarding the Market Events of May 6, 2010: Report of the Staffs of the CFTC and SEC to the Joint Advisory Committee on Emerging Regulatory Issues, September 30, www.sec.gov/news/studies/2010/marketevents-report.pdf
Commodity Futures Trading Commission and Securities and Exchange Commission (CFTC-SEC), 2011a, Joint Study on the Feasibility of Mandating Algorithmic Descriptions for Derivatives: A Study by the Staff of the Securities and Exchange Commission and the Commodity Futures Trading Commission as Required by Section 719(B) of the Dodd-Frank Wall Street Reform and Consumer Protection Act, April 7, 2011, Technical Report, www.cftc.gov/LawRegulation/DoddFrankAct/ReportsandStudies/StudyAlgorithmicDescriptions/index.htm
Commodity Futures Trading Commission and Securities and Exchange Commission (CFTC-SEC), 2011b, Reporting by investment advisers to private funds and certain commodity pool operators and commodity trading advisors on Form PF, Final rule, Federal Register, 76(221), 71128–71239, www.gpo.gov/fdsys/pkg/FR-2011-11-16/pdf/2011-28549.pdf
Commodity Futures Trading Commission and Securities and Exchange Commission (CFTC-SEC), 2012, Joint Report on International Swap Regulation, Technical Report, January, www.sec.gov/news/studies/2012/sec-cftc-intlswapreg.pdf
Financial Crisis Inquiry Commission (FCIC), 2011, The Financial Crisis Inquiry Report: Final Report of the National Commission on the Causes of the Financial and Economic Crisis in the United States, January, www.gpoaccess.gov/fcic/fcic.pdf
Financial Stability Board (FSB) and International Monetary Fund (IMF), 2011a, The Financial Crisis and Information Gaps: Report to the G-20 Finance Ministers and Central Bank Governors, Technical Report, October, www.financialstabilityboard.org/publications/r_091107e.pdf
Financial Stability Board (FSB) and International Monetary Fund (IMF), 2011b, The Financial Crisis and Information Gaps: Implementation Progress Report, Technical Report, June, www.imf.org/external/np/g20/pdf/063011.pdf
Financial Stability Oversight Council (FSOC), 2011, Authority to require supervision and regulation of certain nonbank financial companies: Second notice of proposed rulemaking and proposed interpretive guidance, Federal Register, 76(201), 64264–64282, www.gpo.gov/fdsys/pkg/FR-2011-10-18/pdf/2011-26783.pdf
Financial Stability Oversight Council (FSOC), 2012, Authority to require supervision and regulation of certain nonbank financial companies, Final rule and interpretive guidance, Federal Register, 77(70), 21637–21662, www.gpo.gov/fdsys/pkg/FR-2012-04-11/pdf/2012-8627.pdf
Grant, Thornton, 2009, SEC adopts final rule for XBRL reporting, New Developments Summary,2009-10, March, www.grantthornton.com/staticfiles/GTCom/ files/services/Audit%20and%20assurance%20services/Assurancepublications/New%20Development%20Summaries/NDS%202009/NDS_2009-10.pdf
Hazen, Thomas, 2005, The Law of Securities Regulation, Fifth edition, West Publishing.
Hu, Henry T. C., 2012, Too complex to depict? Innovation, ‘pure information’ and the SEC disclosure paradigm, Texas Law Review, 90(7).
Karmel, Roberta S., 2008, The EU challenge to the SEC, 31 Fordham International Law Journal, 1692, 1711.
Kirilenko, Andrei, 2011, Presentation slides, Conference on Systemic Risk and Data Issues hosted by the University of Maryland, New York University, Carnegie-Mellon University and University of California at Berkeley, Washington DC, 5-6 October 2011, www.rhsmith.umd.edu/cfp/events/2011/confSystemicRisk1011/recap/docs/Kir ilenkoSlides.pdf
Laux, Christian and Christian, Leuz, 2010, Did fair-value accounting contribute to the financial crisis?Journal of Economic Perspectives, 24(1), 93–118. www.aeaweb.org/atypon.php?return_to=/doi/pdfplus/10.1257/jep.24.1.93
Loss, Louis, 1988, Fundamentals of Securities Regulation 33, Second edition.
Office of Information and Regulatory Affairs (OIRA), 2012, Information Collection Review, Internet site, accessed June 22, 2012, www.reginfo.gov/public/do/PRAMain
OTC Derivatives Regulators' Forum (ODRF), 2009, Framework for Information Sharing and Cooperation Among OTC Derivatives Regulators, Technical Report, September, www.otcdrf.org/documents/framework_sept2009.pdf
OTC Derivatives Regulators' Forum (ODRF), 2010, Scope and Relationship with International Bodies, Technical Report, March, www.otcdrf.org/documents/scope_relationships_mar2010.pdf
Paredes, Troy, 2011, Speech by SEC Comissioner: Twelfth Annual A.A. Sommer, Jr. Lecture on Corporate, Securities and Financial Law, October 27, www.sec.gov/news/speech/2011/spch102711tap.htm
Saunders, Anthony and Marcia, Cornett, 2010, Financial Institutions Management: A Risk Management Approach, McGraw-Hill.
Securities and Exchange Commission, 2009a, Interactive data to improve financial reporting; Final rule, Federal Register, 74(26), 6776–6821, www.sec.gov/rules/final/2009/33-9002fr.pdf
Securities and Exchange Commission, 2009b, Interactive data for mutual fund risk/return summary; Final rule, Federal Register, 74(32), 7748–7776, www.sec.gov/rules/final/2009/33-9006fr.pdf
Securities and Exchange Commission, 2011a, Security ratings; Final rule, Federal Register, 76(149), 46603–46621, www.gpo.gov/fdsys/pkg/FR-2011-08-03/pdf/2011-19421.pdf
Securities and Exchange Commission, 2011b, Performance Measures Results Summary, United States Securities and Exchange Commission FY 2011 Performance and Accountability Report, www.sec.gov/about/secpar/secpar2011.pdf#2011review
Securities and Exchange Commission, 2012a, Securities and Exchange Commission Forms List, Internet resource, accessed April 30, 2012, www.sec.gov/about/forms/ secforms.htm
Securities and Exchange Commission, 2012b, EDGAR Filer Manual – Volume II: EDGAR Filing, Version 19, Technical Report, March, www.sec.gov/info/edgar/edmanuals.htm
Securities and Exchange Commission, 2012c, Office of Interactive Disclosure: History, Internet resource, accessed June 22, 2012, www.sec.gov/spotlight/xbrl/oid-history.shtml
Securities and Exchange Commission, 2012d, XBRL.sec.gov, Internet resource, accessed June 22, 2012, http://xbrl.sec.gov/
Securities and Exchange Commission, 2012e, Examinations by the Securities and Exchange Commission's Office of Compliance, Inspections and Examinations, www.sec.gov/about/offices/ocie/ocieoverview.pdf
Securities and Exchange Commission, 2012f, Office of Credit Ratings, www.sec.gov/about/offices/ocr.shtml
Soderquist, Larry and Theresa, Gabaldon, 2007, Securities Law, Third edition, Foundation Press.
Sommer, A. A. Jr., 1978, The U.S. Securities and Exchange Commission Disclosure Study, 1 J. Comp. Corp. L. & Sec. Reg. 145, 147.