By: Yechezkel Fischelgruber
The head of the Securities and Exchange Commission believes that the United States stock markets should remain open despite the butt kicking they are enduring.
“Markets should continue to function through times like this,” SEC Chair Jay Clayton told CNBC in a phone interview. He also said that his group was carefully watching markets and working together with the various exchanges and market infrastructure providers to ensure they could continue to function.
On Sunday, the Federal Reserve cut interest rates to almost zero, and said it would commit hundreds of billions of dollars in asset purchases and backstopping foreign authorities with the offer of cheap dollar financing, according to the New York Post. “Some analysts speculated Monday that closing the markets altogether might be the next step for regulators, who are rapidly running out of tools to arrest the turmoil.”
But the SEC is doing much more to help Americans. Three days ago it announced regulatory relief for funds and investment advisers whose operations may be affected by the coronavirus. The relief provided covers in-person board meetings and certain filing and delivery requirements for certain investment funds and investment advisers.
“The impacts of the coronavirus may delay or prevent funds and advisers operating in affected areas from meeting certain regulatory obligations due to restrictions on large gatherings, travel and access to facilities, the potential limited availability of personnel and similar disruptions,” the SEC said in a statement. “Today’s relief is designed to enable funds and advisers to meet those obligations and to continue their operations, while recognizing that there may be temporary disruptions outside of their control.”
“Investment funds and advisers are at the forefront of Main Street investor access to financial markets, and the Commission is monitoring closely the impacts of the coronavirus on investors and market participants,” said SEC Chairman Jay Clayton. “As investors, investment funds, investment advisers and other market participants endeavor to address these challenges, the Commission stands ready to take action in the interest of our investors and our markets as appropriate. Today’s targeted relief will provide additional time so affected funds and advisers can continue meeting the expectations of their investors and clients.”
The Commission and its staff continue to assess impacts relating to the coronavirus on investors and market participants, and will consider additional relief from other regulatory requirements. Firms and financial professionals affected by the coronavirus are encouraged to contact the staff with questions and concerns. The Commission may extend the time period for relief, with any additional conditions it deems appropriate, or provide additional relief as circumstances warrant.
