[Date Next]
[Thread Prev]
[Thread Next]
more edgar clippings
- To: carl@radio.com
- Subject: more edgar clippings
- From: rick@uunet.uu.net (Rick Adams)
- Date: Thu, 24 Aug 1995 11:55:43 -0400
InfoSeek Document
-------------------------------------------------------------------------------
SEC, companies scrambling for EDGAR Internet replacements Reuters News Service, Aug 23, 1995 13:02 (5K) Wire Services
SEC, companies scrambling for EDGAR Internet replacements
By Michelle V. Rafter
LOS ANGELES (Reuter) - Who'd have thought a guy named EDGAR could make people so crazy.
In case you're not acquainted, EDGAR isn't really a guy, it's an ``it,'' an enormous electronic database of corporate annual reports, proxy statements and other documents that most of the nation's public companies are required to file with the Securities and Exchange Commission.
These 10Qs and 10Ks reveal all a company's ups and downs and almost-buried secrets, making them perfect bedtime reading for smart investors.
In January 1994, a non-profit group funded by the National Science Foundation put EDGAR filings on the Internet, for any and all to see. For free. To their delight, the service took off. As of July 31, corporate and private investors had accessed 3.1 million EDGAR files -- a daily average of 16,700.
But come Oct. 1, the Internet Multicasting Service and New York University are shutting down their experimental Internet access, partly because they've achieved their goal and funding is running out. They also believe a recently passed federal paperwork reduction act puts the onus of providing access to government records on public agencies, such as the SEC.
According to Internet Multicasting President Carl Malamud, it's time for the SEC to pick up the ball, and either disseminate EDGAR files over the Internet directly, or work out deals with private companies to offer the service.
Here's where the craziness comes in.
SEC Commission Chairman Arthur Levitt Jr. has pledged to keep EDGAR online, but how he'll do that is the question of the day. Malamud contends the SEC could do the job itself, for a couple hundred thousand dollars a year.
But critics point out that taxpayers would be subsidizing the venture and claim his estimates don't take into account things like telephone support and making sure computers never crash -- things that cost lots of money.
There's more. Providing data for free could potentially upset the securities agency's existing relationships with a handful of ``dissemination contractors,'' companies such as Lexis/Nexis that pay more than $100,000 a year for the rights to receive raw EDGAR filings, tidy them up and resell them to financial information brokers such as Disclosure Inc., who in turn, repackage the data and sell it to corporate and individual investors.
The SEC had planned to meet earlier this week with all the companies interested in being part of the EDGAR Internet solution, but canceled at the last minute after asking for more time to sort things out, according to one frustrated participant.
A SEC spokesman would not comment on the subject, except to say the agency has talked with a number of companies and hasn't decided how to proceed.
Meanwhile, the rush is on to fill the void Internet Multicasting Service and NYU will leave when they close up shop on Oct. 1. A number of financial information brokers -- including some of the biggest names in the business -- are rumored to be eager to keep EDGAR alive on the Internet, though only a few are willing to talk about it on the record.
Joseph Kasputys, chairman of Disclosure's parent Primark, said his company might consider offering customers raw EDGAR information over the Internet as an enticement to buy other, more sophisticated financial information packages. But, at least for now, Primark won't include EDGAR data in a just-introduced package of financial services that Disclosure and several sister companies will debut on the Microsoft Network when the online service is launched Aug. 24.
On Aug. 22, Global Securities Information of Washington said it would begin providing free, real-time access to EDGAR filings beginning Oct. 1.
The Windows-based service, called FREE LIVEDGAR (http://www.gsionline.com), will let users do keyword searches on filings dating back to April 10, 1993, improving on Internet Multicasting Service's EDGAR system, which was limited to 1994 and 1995 filings. Global Securities hopes to make its money selling value-added services.
Another Florida company, Global Success Inc. of Naples, said last week it would put EDGAR data on a Web site it is constructing called BizWorld (http://www.bizworld.com) if the SEC grants its request to become an information contractor.
Global Success President Leslie Norins said he would charge little or nothing for the content -- the company's marketing manager wouldn't quote an exact a price -- and use ads to subsidize the service.
Clifford Boro, founder of Internet Financial Network in Davie, Fla., a year-old online financial information broker, said he would also be willing to provide some EDGAR documents on his Internet-based service for free, not because of any obligation he feels to the public, but because it's good business.
Boro currently pays $18,000 a month to Lexis/Nexis for raw EDGAR data, which he currently offers at $12.50 per file to customers who connect to his financial network through local Internet access providers.
``Nowhere does it say 'thou shalt receive EDGAR documents through the Internet for free,' but because it's in the SEC's best interest and my best interest,'' he would offer information at no charge, Boro said. ``At the same time, my company will fight every inch of the way if the SEC decides to destroy the business it created.''
(Michelle V. Rafter is a Los Angeles-based reporter who covers cyberspace and technology. Reach her at mvrafter(at)deltanet.com or mvrafter(at)aol.com. Any opinions in the column are solely those of Ms. Rafter.) REUTER Reut13:03 08-23-95
Copyright 1995 Reuters Limited. All rights reserved. Republication and redissemination of the contents of this screen are expressly prohibited without Reuters prior written consent. User shall not store this article on any electronic media for a period of more than seven days.
This article is copyrighted. Any unauthorized access, reproduction or
distribution is strictly prohibited.
-------------------------------------------------------------------------------
HELP HOME QUERY ACCOUNT INFO FEEDBACK TITLES
[Date Prev]
[Date Next]
[Thread Prev]
[Thread Next]