October 25, 2000
The Honorable Arthur Levitt, Jr. Dear Chairman Levitt: I am transmitting the October 13, 2000, response of the U.S. General Accounting Office (GAO) to the Securities Industry Association claim that it would be "premature" to impose recordkeeping and disclosure requirements regarding delays and outages in brokerage firms’ online trading systems as well as Web site disclosure of key investor protection information. Reps. Towns, Klink, and Markey join me in asking that you consider GAO’s comments as you prepare your progress report on this matter. Among other things, GAO notes that this information could assist securities regulators in assessing whether broker-dealers are complying with SEC guidance on maintaining adequate systems capacity. This is very important and I would note Federal Reserve Chairman Greenspan’s recent remarks about the need to enhance system capacity to handle ballooning securities market volume. GAO also correctly notes that the recommended disclosure would help investors to better understand their risks and the online trading operations of broker-dealers. Given the clear and considerable public benefits, SIA’s resistence to GAO’s prudent recommendations is puzzling. Industry best practices guidelines and SEC regulations can and should be able to operate hand in hand. Thank you for your cooperation and attention to this important market integrity and investor protection issue. Sincerely, JOHN D. DINGELL cc: The Honorable Edolphus Towns, Ranking Member The Honorable Edward J. Markey, Ranking Member The Honorable Ron Klink, Ranking Member The Honorable Tom Bliley, Chairman The Honorable Michael G. Oxley, Chairman The Honorable W.J. "Billy" Tauzin, Chairman The Honorable Fred Upton, Chairman
| |
|
 |
 |
 |
 |
 |
 |
 |
 |
