Senators question SEC data release

Top lawmakers on the Senate Banking Committee raised questions Monday about whether Securities and Exchange Commission (SEC) officials make market-sensitive information available to private subscribers before the general public.

{mosads}Senate Banking Committee Chairman Tim Johnson (D-S.D.) and ranking member Mike Crapo (R-Idaho) sent a letter to SEC Chairwoman Mary Jo White, calling on her to address the findings of an academic study released last month that found nonpublic information was sent to subscribers of a database before it was released generally.

“This disparity raises significant concerns regarding the management of the data systems that provide investors access to important, and potentially market-moving, information,” Johnson and Crapo wrote in the letter.

“Please explain the steps you are taking to fully understand and eliminate this disparity and when these steps will be completed,” they continued. “Please outline what you have previously done to address any similar issues, how you will review for any other discrepancies in SEC systems and how you will monitor to avoid such issues in the future.”

The study was conducted by Jonathan L. Rogers at the University of Chicago and Douglas J. Skinner and Sarah L.C. Zechman at the University of Colorado.