Magazine Article | April 1, 2003

SEC Saves $150,000/Month With XML E-Forms

Business Solutions, April 2003
Written by: Carly Rohrer

The U.S. Securities and Exchange Commission (SEC) is an independent regulatory agency formed to protect investors and maintain the integrity of the securities markets. Most domestic public companies are required to disclose financial and other information to the SEC electronically. EDGAR (electronic data gathering, analysis, and retrieval system) is the SEC system that accepts regulatory documents and disseminates that information to data vendors and the public. EDGAR also accepts magnetic cartridges.

EDGAR receives between 12 million and 16 million pages of documents annually from more than 28,000 different entities, totaling over 350,000 filings each year. With this volume, EDGAR was stretched to its technical limits. Also, EDGARLink, the SEC's Web-based client filing software, was an outdated, complex, character-based system.

The SEC needed a modernized EDGARLink to:

  • Reduce costs to EDGARLink users
  • Improve service
  • Provide rapid transmission time
  • Maintain stringent security measures
  • Provide cost-effective distribution of filings
  • Maintain strict legal and regulatory compliance
  • Meet GPEA (Government Paperwork Elimination Act of 1998) requirements
  • Cut costs

Costs Cut While Security Is Protected
With the selection of PureEdge secure XML e-forms the SEC modernized EDGAR. PureEdge e-forms automate business processes. Using an Internet-based architecture, PureEdge e-forms integrate with other business systems and create electronic records. By revamping the client EDGARLink package, the filing of disclosure reports for external customers was simplified. The SEC also improved ease-of-use for internal users. Forms are downloaded from the EDGAR Web site, completed, validated, digitally signed, and securely submitted to the SEC. Related documents can be attached to the forms, which streamlines the filing process.

Rick Heroux, EDGAR Program Manager for the SEC, says, "Documents used to be submitted in hard copy format using couriers, overnight mail, and regular postal services. Now the information is submitted worldwide within minutes of receipt." Costs were substantially reduced; the dissemination service has saved subscribers more than $234,000 per year in subscription rates, and the SEC saves approximately $150,000 per month in maintenance costs. The SEC also ensured GPEA requirements were met, security was protected, and legal and regulatory compliance was maintained.