University of Texas School of Law Professor Henry Hu will head up the Division of Risk, Strategy and Financial Innovation
The US Securities and Exchange Commission (SEC) announced it is establishing a new unit to help the agency identify risks and regulate financial market innovation.
University of Texas School of Law Professor Henry Hu will head up the Division of Risk, Strategy and Financial Innovation.
The new division combines the Office of Economic Analysis, the Office of Risk Assessment, and other functions. The agency wants a single unit dedicated to policing derivatives and other financial products. The division's responsibilities will cover risk and economic analysis, strategic research and financial innovation.
Chairman Mary Schapiro said combining economic, financial, and legal analysis would help improve the agency’s expertise.
The SEC hopes the new approach will help it keep pace with developments in real world products and practices on Wall Street.
With the creation of the Division of Risk, Strategy, and Financial Innovation, the SEC now has five divisions, including the Division of Corporation Finance, the Division of Enforcement, the Division of Investment Management, and the Division of Trading and Markets.