The United States Securities and Exchange Commission (SEC) has proposed amendments to its information collection procedures under the Securities Exchange Acts of 1934. The securities regulator now wants broker-dealers, clearing agencies and security-based swap dealers, among others, to submit “a number of filings” electronically.

The SEC proposes the filings be sent via the Electronic Data Gathering, Analysis and Retrieval (EDGAR) internal database system. These forms are to be filed “using structured data where appropriate,” the regulator noted.

COVID Inspires SEC to Modernize Filings

In a statement issued on Wednesday, the financial watchdog noted that broker-dealers and other registrants under its supervision are required under the Exchange Acts to manually submit many forms and filings. However, during the wake of the COVID-19 pandemic in 2020, many firms sought electronic transmission of these forms due to health, transportation and other logistical issues. These electronic filings were “generally well received,” SEC noted.

The financial watchdog explained that the amendment proposal is part of its efforts to modernize the methods by which it collects and analyzes information from the registrants. The SEC further noted that it will accept public feedback on the proposed amendments until May 22, 2023, or 30 days after its publication in the Federal Register.

The Amendment Covers “Nearly All Remaining Paper Filings”

Speaking on the proposal, Gary Gensler, the SEC Chair, noted that the amendment is seeking electronic filing “for nearly all of the remaining paper filings required under the Exchange Act.” The SEC boss noted that the amendment if adopted would help both the regulatory agency and market participants to save time and resources.

“We live in a digital age. In 2023, one might think that all filings to the Commission already could be made electronically. That’s not yet true,” the SEC Chair explained.

Furthermore, the SEC explained that its proposal seeks certain changes regarding the Financial and Operational Combined Uniform Single (FOCUS) Report to “harmonize it with other rules, make technical corrections and provide clarifications.” The FOCUS Report is an SEC form used by broker-dealers and their primary self-regulatory organizations to disclose their net capital position.

“In addition, the proposed amendments would require withdrawal of notices filed in connection with an exception to counting certain dealing transactions toward determining whether a person is a security-based swap dealer in specified circumstances,” the SEC explained.