According to Smith, the SEC is moving toward an aggressive data analytics-driven enforcement regime whereby the agency is able to compile and present comprehensive trading analyses demonstrating a potential violation, prior to even opening a formal investigation against an entity.
“They’re not shooting first and asking questions later, but they are coming in ready to charge,” Smith said. “They’re saying, ‘We don’t believe you can possibly refute the data, so you either settle with us or we’re going to charge you.’”
Smith predicted that, as the SEC obtains more favorable outcomes through enhanced analytics, it will become even more inclined to use such tactics.
‘Enforcement 40’ for 2020
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