Securities and Exchange Commission chair Mary Jo White updated the Senate Banking Committee Tuesday on the work underway at the agency to implement the Wall Street Reform Act and reduce systemic risk in the financial markets.
The SEC has made progress to address areas of systemic risk by proposing rules to implement money market fund reform, which follow earlier reform measures taken by the agency.
"We look forward to hearing more about the SEC’s efforts to address flaws in the operation and use of credit ratings that were exposed by the financial crisis," said Senate Banking Committee Chairman Tim Johnson, D-SD.
He added, "As required by the Wall Street Reform Act, there has been extensive examination of this issue, and I look forward to improvements in the credit rating process."
White told lawmakers that among the key provisions of the Dodd-Frank Act are those that establish a new oversight regime for the over-the-counter derivatives marketplace.
Such rules are intended to achieve a number goals including, increasing market transparency for regulators and market participants.
"The Commission recognizes the importance of limiting systemic risk in our financial markets and is committed to taking appropriate steps to address systemic threats to our financial system in a balanced manner that preserves the strengths of the system and protects investors," White concluded.