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The field of economic research is central to our work at the SEC. It helps shape every aspect of our policymaking, from the early design phase to the proposing releases to the consideration of public comments to the adopting releases.
financial markets
SEC Chairman Gensler Speaks Before the Investor Advisory Committee
It’s good to be back with the Investor Advisory Committee (IAC) again. As is customary, I’d like to note that my views are my own, and I’m not speaking on behalf of the Commission or SEC staff.
I’d like to
How Does Better Access to Public Firm Disclosures Affect IPO Firm Financing?
Financial markets affect the economy in a fundamental way by facilitating the creation of capital. The market for initial public offerings (IPO) – also known as the “primary market” – is especially important because it allows fast-growing and innovative companies …
SEC Chair Gensler Testifies Before U.S. House Committee on Financial Services
Good afternoon, Chairwoman Waters, Ranking Member McHenry, and members of the Committee. I’m honored to appear before you today for the second time as Chair of the Securities and Exchange Commission. As is customary, I will note that my views
Reforming the Macroprudential Regulatory Architecture in the United States
When the COVID-19 pandemic shuttered major economies in March 2020, it also wreaked havoc on financial markets. In the first few weeks of March, investment-grade corporate bonds lost roughly a fifth of their value, on par with the declines in …
Risk and Ambiguity in Turbulent Times
Over the past 50 years, the financial markets have been rocked by major shocks, which have led to the introduction of financial instruments that could cope with uncertainty in general and extreme events in particular. To manage the uncertainty surrounding …
Mind the (Data) Gaps: SEC Commissioner Speaks at Conference on Financial Market Regulation
Before I begin my remarks, I need to mention that the views that I express today are my own and do not necessarily reflect the views of the Commission or its staff.
To start, I want to note that I
How Blockchain-Based Financial Markets Can Create Systemic Risks That Harm Lower-Income People
Blockchain-based platforms create exciting possibilities for financial inclusion: widespread ownership of deposit accounts and access to payments services. From a macro-level perspective, however, these platforms can aggravate systemic risks. Systemic instability, in turn, threatens financial inclusion and sustainability.
Sustainable finance, …
The Government Tools for Responding to Market Distress
In the spring of 2020, as the Covid-19 pandemic shut down economies around the world, pressure arose for governments to respond to the growing threat of pandemic-related market distress. In the United States, the initial proposals for government action varied …
The Case for Prudential Regulation of the Litigation Finance Market
[Editor’s Note: This and the piece that immediately follows offer a point/counterpoint on litigation finance.] The past decade has witnessed a steady stream of innovative capital markets products. Among these developments is litigation finance – a transaction form …
Cleary Gottlieb Discusses New EU ESG Disclosure Obligations for Financial Services Firms
Over a year ago, on December 29, 2019, Regulation (EU) 2019/2088 on sustainability-related disclosures for the financial services sector (the “Sustainable Finance Disclosure Regulation”, or “SFDR”) entered into force. Just a few months remain before key …
What Factors Affect Global Investment in Private Equity?
Since the1990s, global investment in private equity has increased from under $10 billion per year to well over $100 billion. Over the same period, there has also been a shift from public markets in major economies like the U.S. and …
SEC Commissioner Speaks on Financial Market Regulation
Whenever I talk to economists, since I cannot awe you with a fancy equation, I have to start with a bad joke. It is a knock-knock joke, which is especially hard to pull off when trying to physically distance. “Knock,
Financial Markets and News About the Coronavirus
From its February 2020 peak to a March 2020 trough, the S&P 500 index fell 34 percent. This fall was accompanied by extreme volatility, at a level last seen during the global financial crisis. Invariably the selloff was accompanied by …
Evidence of Systemic Risk from Major Cybersecurity Breaches
In general economics, “asymmetric information” refers to information about a transaction in which one party knows more than another party, to the potential benefit of the former at the expense of the latter. An example often occurs when consumers and …
Beyond Disclosure: A New Way of Examining Securities Regulation
When it comes to the U.S. securities markets, the game has changed. Historically, the U.S. securities markets were dominated by retail investors who engaged in a buy and hold strategy: purchasing stocks as a vehicle to invest in a corporation …
Disruption and the Credit Markets
In the past 30 years, defaults on corporate bonds have been substantially higher than the historical average. Dividing the years from 1970 to 2016 into two equal periods, the default rate of U.S. corporate bonds rose from 0.12 percent to …
Video: The Biggest Issues Facing Securities Markets in the 21st Century
An esteemed panel of regulators, scholars, and lawyers gathered at Columbia Law School on March 29 to discuss Securities Market Issues for the 21st Century, a new e-book on the most important areas of inquiry for securities regulation and …
SEC Chair Clayton Talks SEC and Market Transparency
Thank you, Keith [Higgins], for that gracious introduction.[1] Let me return the sentiment. Keith – you are a member of an esteemed group of Division Directors, some of whom are here today, who have served the Commission and, most …
