Today, Securities and Exchange Commission Chair Jay Clayton testified today in the House of Representatives regarding the SEC’s response to the effects of the COVID-19 pandemic on the markets.  The Chair outlined the SEC’s efforts, including market monitoring and regulatory coordination; guidance and targeted assistance and relief; investor protection, education and outreach efforts; and the ongoing mission-oriented work of the SEC.  The Chair noted that Staff across the SEC—including the Division of Trading and Markets, the Division of Investment Management, the Division of Economic and Risk Analysis and the Office of Municipal Securities—have been continuously monitoring our capital markets, including with respect to prices and price movements, capital flows and credit availability, and engaging with market participants.  He noted the coordinated efforts of the SEC’s cross-divisional COVID-19 Market Monitoring Group, which has been the focal point for managing and coordinating the SEC’s efforts.  Chair Clayton also reviewed the guidance and regulatory relief and assistance provided by the SEC to market participants affected by the pandemic.  He also reiterated the SEC’s focus on promoting clear, high-quality, and timely disclosures.

The Chair also commented on investments in emerging markets, including China.  Chair Clayton stated, “I believe the status quo has come to be unacceptable, and this is an issue that should be emphasized to investors—particularly our Main Street investors.  I am pleased the SEC staff will hold a roundtable on July 9 to explore ways to increase investor awareness of these risks and potential additional steps that can be taken to mitigate them.”

The full written testimony is available here.