(September 30, 2013) – As politicians play chicken on Capitol Hill, the US Securities and Exchange Commission (SEC) has detailed how it intends to keep investors safe during the disruption.
All leave is cancelled for SEC staff should Congress fail to agree measures to prevent funding being pulled from government services, a move that would see non-essential federal offices face closure and employees side-lined or working without pay.
Investors in US markets can take heart, however, as monitoring of securities trading—and those carrying out this business—is not deemed “non-essential”.
In a memo, the SEC said market monitoring and surveillance teams would continue to “perform market watch activities and monitor market technology operations”.
Investors may also be cheered that this department is to “monitor any broker-dealers reported as being in financial distress; money market fund surveillance and monitoring; and monitor any international market developments that might impact the US”.
Any unscrupulous market participant shouldn’t think they would get away with pulling any tricks in the event of a shutdown—the SEC is ready.
The agency’s Law Enforcement/Litigation team will be on hand to “handle emergency enforcement matters, including temporary restraining orders and/or investigative steps necessary to protect public and private property; monitor the commission’s ‘tips, complaints, and referrals’ system and web-based investor complaint system and process referrals from self-regulatory organizations and others to identify matters that are emergencies and take follow-up steps relating to such emergencies; on-going litigation that cannot be deferred where there is a threat to property; and emergency examinations and inspections to protect public and private property”.
However, those of you who are excited to see the final version of the Dodd-Frank Act may have to bide your time.
All writing of “non-emergency” legislation would be brought to a halt, should the government fail to reach consensus, the SEC said, and firms looking for the agency’s approval to start gathering or trading assets would also have to wait.
International governments may have to hold on too. Under the “discontinued” list featured: “Non-emergency assistance to foreign authorities under bilateral or multilateral arrangements; and participation in multilateral organizations and working groups.
For a full run down of the SEC potential disruptions of service, click here.
Related content: Two Weeks in September: A Breakdown of the Financial Breakdown Five Years On.