Markets Wired

This month, the Division of Economic and Risk Analysis celebrated its 10^th anniversary.

In September 2009, the SEC created the Division of Risk, Strategy and Financial Innovation to better integrate economic analysis, risk assessment and data analytics functions within the SEC. “RiskFin,” as it was known, was subsequently renamed the Division of Economic and Risk Analysis or “DERA” in 2013. Today, DERA’s team of economists, financial analysts, data scientists, statisticians, accountants, attorneys, and other professionals provide a range of economic and risk analyses, litigation support services and data analytics that is both unparalleled and essential to the effectiveness of our work.

DERA’s wide range of contributions to the Commission, our investors and our markets include:

• Economic analyses for rulemakings and SRO rule filings,
• Policy-related research, including publishing 14 research papers last year alone,
• Economic analysis and expert support to the Division of Enforcement, including testifying , in litigated proceedings and providing materiality and remedy analyses,
• Data science and risk assessment expertise, including developing various tools that provide market participants with enhanced understanding of the markets,
• Monitoring global economic and market risks in coordination with other U.S. and international agencies and organizations.

I would like to extend my sincere thanks to the many dedicated and talented staff members in DERA for their important work, and to our DERA Director and Chief Economist, S.P. Kothari, for his leadership.