The Securities and Exchange Commission has created a new office within the Division of Economic and Risk Analysis to organize efforts in developing tools for risk assessment used to help support the SEC’s activities, the agency announced on Thursday.
Since its establishment in 2009, DERA has worked with market experts across the agency to develop risk assessment tools, said the SEC. Back then, the division created an instrument called the Aberrational Performance Inquiry to identify unusual hedge fund activity, which resulted in eight enforcement actions and is now used by the agency’s enforcement division in evaluating funds.
