EDGAR (data processing system)

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EDGAR or Electronic Data Gathering, Analysis, and Retrieval is a database operated by the United States Securities and Exchange Commission (SEC) for legally required reports from all companies that are required by US law to file their financial statements with the SEC. Data in EDGAR is accessible via the Internet.

The legal basis for EDGAR are the laws:

  • 1933 Securities Act
  • 1934 Securities Exchange Act
  • 1939 Trust Indenture Act
  • 1940 Investment Company Act.

These laws govern the issuance of securities of listed companies . The SEC's regulation on the use of the EDGAR system was filed under Section 17 of the Code of Federal Regulations .

In the past, these laws meant sending the required data on paper, by post, or by personal delivery. The records were microfilmed for permanent storage . In 1980 the SEC received around 12 million pages of documents per year. The processing of the paper became so complex that electronic processes were considered.

The system was named EDGAR for Electronic Data Gathering, Analysis, and Retrieval . for electronic data collection, analysis and retrieval . The primary goal was to allow filers the option of electronic filing, while at the same time improving the ability of SEC staff to view the documents.

history

The development of an electronic filing system for reports required by the SEC began in 1983. In the fall of 1984, a pilot system was in place where reports could be filed voluntarily. From July 1992 the system was available to voluntary users.

In February 1993, the SEC finally enacted interim rules requiring the data to be delivered by direct transmission, diskette, or magnetic tape . From April 26, 1993, these rules were tested in several steps with an increasing number of users. From January 1 to July 30, 1994, SEC staff examined the system and data and evaluated the results. With the positive decision of this group, the final introduction process began. After a series of minor changes, paper versions submitted on January 1, 1998 were no longer accepted. As of June 28, 1999, the SEC also accepted filings in HTML . At the same time, unofficial accompanying documents could now also be submitted in PDF format, i. H. the reports could be stored in a human-readable form. The content of these documents had to match the submitted electronic versions, but they could be formatted in such a way that a person could easily read them.

From April 24, 2000, the system could be fed directly via the Internet. The HTML files could now also contain graphic elements and the use of hyperlinks was expanded. Shortly afterwards, as of January 1, 2001, floppy disks could no longer be used for filing.

From April 26, 2004, the access system was updated and the CIKs ( Central Index Keys ) were issued, a public number that uniquely identified each participant in the system.

System environment

EDGAR is a fully automated computer system with various subsystems. The hardware is maintained in the SEC Operations Center in Alexandria . It essentially consists of the active system and a development system. Leidos is also involved in the development .

Attacks on the database

In September 2017, Forbes Magazine published that the SEC's EDGAR database had been attacked by hackers in 2016 and that the hackers could potentially gain financial gain by possibly gaining access to non-public information. In January 2019, the United States Department of Justice prosecutor briefed two Ukrainian nationals and several other interested parties on sixteen counts.

Individual evidence

  1. ↑ a b c d e f g h i Charles H. Rider: EDGAR Filer Handbook: A Guide for Electronic Filing with the SEC . Aspen Publishers Online, Aspen 2000, ISBN 978-0-7355-1871-1 , pp. ix .
  2. ↑ a b c d e f g h i j k l m n Mauri L. Osheroff, Mark W. Green and Ruth Armfield Sanders: Electronic Filing and the EDGAR System: A Regulatory Overview. An outline of the SEC's EDGAR rules as applied to filings processed by the Divisions of Corporation Finance and Investment Management. In: US Securities and Exchange Commission website. October 3, 2006, accessed March 27, 2019 .
  3. ↑ Janet Burns: SEC Reveals Its EDGAR Database Was Hacked, Maybe Used For Illegal Trades. In: Forbes Magazine website. Forbes Media LLC, September 17, 2017, accessed March 24, 2019 .
  4. ↑ Two Ukrainian Nationals indicted in computer hacking and Securities Fraud Scheme Targeting US Securities and Exchange Commission. Hacking and Trading Scheme Involved Theft of Thousands of 'EDGAR' Filings, Including Draft Earnings Reports of Publicly Traded Companies before Reports were Made Public. In: Website of the Department of Justice of the United States of America. Department of Justice, January 15, 2019, accessed March 26, 2019 .

Web links