SEC’s Clayton Will Testify at Senate Panel in Wake of Data Hack

Stay up-to-date with the latest developments in securities law through access to both news and all statutes and regulations. Find relevant corporate filings through a searchable EDGAR database. And...

By Rob Tricchinelli

Securities and Exchange Commission Chairman Jay Clayton will face scrutiny from Senate lawmakers Sept. 26, less than a week after the agency disclosed a major breach of its electronic filings database.

The Senate Banking Committee announced the agency oversight hearing Sept. 19. Late the following day, the commission released a lengthy statement saying it learned in August of a 2016 cybersecurity incident that allowed unauthorized access to nonpublic information in its Electronic Data Gathering, Analysis, and Retrieval system, known as Edgar. The information “may have provided the basis” for insider trading, the SEC said.

The agency said it believes “the intrusion did not result in unauthorized access to personally identifiable information, jeopardize the operations of the Commission, or result in systemic risk,” but lawmakers are likely to flay Clayton over the breach.

Sen. Mark Warner (D-Va.), a committee member, said in a Sept. 21 statement that “government and businesses need to step up their efforts to protect our most sensitive personal and commercial information.”

Clayton also will speak about “key issues facing the SEC and his perspective on the future direction of securities regulation” at the Brookings Institution in Washington Sept. 28, according to the think tank.

Former SEC Commissioner Annette Nazareth, Securities Industry and Financial Markets Association president and chief executive officer Kenneth Bentsen Jr., and Nasdaq Inc. executive vice president Thomas Wittman will participate in a securities regulation discussion after Clayton’s talk.

Going Away

Commodity Futures Trading Commissioner Sharon Bowen is giving departing remarks Sept. 25 at Georgetown University Law Center. Her last day at the commission is Sept. 29.

Also Sept. 25, CFTC Enforcement Director James McDonald is addressing New York University School of Law’s Program on Corporate Compliance and Enforcement. He is expected to announce a new program to encourage companies to self-report violations and cooperate in investigations.

A House Agriculture Committee hearing scheduled for Sept. 27 to hear from CFTC Chairman J. Christopher Giancarlo is being postponed, a spokeswoman told Bloomberg BNA. She didn’t provide a new date or give a reason for the delay.

House Financial Services Committee members Tom Emmer (R-Minn.) and Gregory Meeks (D-N.Y.) are among the speakers at the Sept. 25 Online Lending Policy Summit in Washington, sponsored by the Online Lending Policy Institute.

To contact the reporter on this story: Rob Tricchinelli in Washington at

To contact the editor responsible for this story: Phyllis Diamond at

Copyright © 2017 The Bureau of National Affairs, Inc. All Rights Reserved.

Request Securities & Capital Markets on Bloomberg Law