If the Equifax security breach didn’t get investors’ attention — and it should have — the hack of Edgar will.
Edgar stands for Electronic Data Gathering, Analysis and Retrieval system. It is the Securities and Exchange Commission’s online filing system for all kinds of financial data by publicly traded companies. Most of that data becomes available to investors once it hits the SEC’s servers. If you want to know sales data, profit projections, and if insiders are buying or selling, Edgar knows.
SEC Chairman Jay Clayton is scheduled to appear before the U.S. Senate Banking Committee on Tuesday in the week ahead. While the agency has acknowledged knowing about the hack in 2016 and learning that it may have been used for illegal trading, it has been short on details.
Spirit of disclosure
The SEC requires companies it regulates to disclose news that is relevant to investors. By not disclosing its own cyber breach until now, the SEC has violated that rule’s spirit.