Thank you, George [Georgiev]. Good morning and welcome to all Committee members and panelists. I appreciate the time and effort that each of you has put into preparing for today's meeting on artificial intelligence and potential changes to regulation of the national markets system.
The first panel will examine how artificial intelligence technologies are changing the process by which public company disclosure is produced, disseminated, and used. Market participants, from retail investors to the largest institutions, are weaving these AI tools into their investment decisions and operations. We see this trend reflected in our own internal data, where the number of downloads of structured data sets on the SEC website has increased significantly in the past few years. Part of this increase may well be attributable to market participants using AI tools to process and analyze that data at a scale not previously possible. Given these developments, it is helpful that the Committee maintains an ongoing discussion of the effects of AI on our markets.
The second panel will cover Regulation NMS. The trade-through prohibition of Rule 611 has shaped the behavior of our equity markets for two decades. Following the Commission’s proposal to rescind Rule 611 and the prohibition on locked and crossed quotations, the Commission has been receiving comment letters from a wide range of market participants including broker-dealers, trading venues, institutional and retail investors, and academics. The panel will examine the implications for investors of rescinding the trade-through rule and what it might mean for market structure more broadly.
On a separate note, tomorrow marks the 25th anniversary of the September 11th attacks on the United States. For many of us, the images of that day will be forever seared in our minds. Yet, as time passes, more and more Americans will not have first-hand recollections of that day: the shock; the horror; the fear; and the anguish. This is why it is important to continue commemorating this day so that even as firsthand memories fade, our collective memory of this event endures.
The terrorists sought to target the very symbols of what makes America great: free markets and democracy. In New York, they went after the World Trade Center and the financial district. In Washington, they went after some of our most important government buildings like the Pentagon and perhaps the Capitol or the White House but for the brave efforts of the passengers on the fourth aircraft. However, terrorism can never destroy the fundamental trait of American resiliency. For 250 years, America has relied on innovation, individual independence, and self-sufficiency to not only survive, but advance, on the global stage.
The moments before the attack, the victims in the Twin Towers and the Pentagon were starting what seemed like just another day of work—analysts, financial professionals, government workers, first responders, and many more. As we remember the nearly 3,000 lives that were lost on September 11th, including one of my classmates from Georgetown University, I would like to think that those people believed that what we do today would bring progress, opportunity, growth, and hope for tomorrow.
So, to close, this meeting may feel like just another meeting, but what we do every day becomes part of something larger than ourselves, and our individual contributions play a small role in honoring the American lives lost in 9/11. For the Commission, it is important to recognize our role in guarding and maintaining the resiliency of America’s financial markets and, by extension, helping to protect American society against those who seek to do us harm.
Thank you again to the Committee members and panelists for your preparation and engagement today. I look forward to the discussion.
