SEC to create unit to track risks in financial markets

The U.S. Securities and Exchange Commission will create the Division of Risk, Strategy and Financial Innovation, which will track risks that develop as financial markets innovate and undergo rapid change. University of Texas law professor Henry T.C. Hu will head the division, which will encompass several previous divisions of the SEC along with some other functions. "The derivatives revolution, the rise of hedge funds and institutional investors, technological change and other factors have transformed both capital markets and corporate governance," Hu said.

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