Will Senate Restrict Open Data in Financial Regulation? H.R. 5405 Would Raise Barrier to Modernization
The U.S. federal government is slowly transforming its information from disconnected documents into open data. Our Coalition scored its first major legislative victory earlier this year with the passage of the DATA Act
, the nation’s first open data law. On May 9, 2014, after Representative Darrell Issa and Senator Mark Warner successfully marched the bill
through a gridlocked Congress, President Obama signed it into law. The DATA Act is a mandate for the government to adopt comprehensive data standards for all of its spending information and to publish that information online.
U.S. financial regulators have yet to adopt comprehensive data standards for the information they collect under the securities laws, the commodities laws, and the Banking Act. If they standardized this information, and made the public portions of it available online—investors could make better decisions
, enforcers could deploy analytics to find the next Enron, and early-stage companies could access capital more cheaply.
Comprehensive, searchable data on smaller companies would enable analysts to cover and recommend them more cheaply. Without open data in financial regulation, buyers are less likely to invest.
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