Johnson, Crapo Seek Information on SEC Electronic Filing Disparities

Press Release

Today, Senate Banking Committee Chairman Tim Johnson (D-SD) and Ranking Member Mike Crapo (R-ID) sent a letter to U.S. Securities and Exchange Commission (SEC) Chair Mary Jo White to express concern over reports that company filings electronically submitted to the SEC are made available to private subscribers before the general public.

"Ensuring a fair marketplace is one of the SEC's most important objectives," said Johnson. "I urge the SEC to quickly investigate this timing disparity for company filings and take the necessary steps to eliminate it."

"The SEC is tasked with protecting investors and maintaining fair and efficient markets," said Crapo. "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."

A recent academic study has shown that private subscribers to an SEC direct data feed have access to information before being made publicly available on the SEC's website. This timing discrepancy gives an advantage to certain sophisticated trading firms. In their letter, Senators Johnson and Crapo request that the SEC explain the steps being taken to eliminate this disparity and prevent this issue from happening again in the future.

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