The SEC discovers Twitter…

So far, I’ve managed to avoid picking up a Twitter habit, the popular micro-blogging platform that many of the cool kids use. It’s not because I’m stubborn or unwilling to adopt new technology. It’s because most of my updates — called Tweets — would look something like this: “Reading SEC filings” or “Still reading SEC filings”, with an occasional break every now and then for “hiking with my dog”. And I’m quite sure most people can go about their days without that level of detail.

So you can imagine my surprise when I came across one of Twitter’s newest members: the SEC. (Of course, if I was up to date on my RSS-reading, I would have caught my friend Barry Ritholtz’ post on this from last week, but since it’s Q season, hopefully I’ll be excused for being late to the party).

Now before you get all excited about learning something — anything — juicy about one of the three new commissioners, I’m here to let you know that the SEC’s Tweets are pretty bland: essentially a compressed version of the press releases that are available on the SEC’s site. It’s not really clear why only some of the press releases are Twitter-worthy and others — like this one on the SEC stopping a tire recycling scam - are not. Also interesting is that the SEC joined Twitter the day before it announced new guidance on corporate websites. However, a quick skim of the 47-page guidance turns up no mention of Twitter.

Maybe it’s just a matter of limited resources. Perhaps, the SEC can include a separate line for updating Twitter the next time it asks Congress for more money. Still, when government agencies start tweeting, it seems like a sure sign that the cool technology has jumped the shark. At least there’s still Plurk.

UPDATE 8/8: In the comments below, I’ve posted a brief Q&A with John Nester of the SEC on the reasons why the agency has started Twittering.

Image: AODesign

Posted in SEC stuff Tags: SEC, technology

4 Comments »

4 Responses to “The SEC discovers Twitter…”

1. Merri Jo Gillette Rocks Says:
   August 7th, 2008 at 9:57 am

   Thanks very much for having interest in the Chicago office’s enforcement actions against those tire recyclying scamsters in Michigan.

   Am surprised they didn’t go public as TIRE.PK or TIRE.OB.

2. Frank Graham Says:
   August 7th, 2008 at 10:31 am

   Neat article. I had same reaction to Tweeter when it began.
   Seemed best for large or extended families to stay in sync
   but not much else in finance realm. For that there
   are the various boards, one popular with both traders &
   investors is http://investorshub.advfn.com/default.aspx
   It has a wide variety of interests and styles. Also
   good for deep drill on latest info not found elsewhere.
   Some committed folks actually get & post responses from
   IR on individual stocks. And they post pros & cons often
   in detail.

   Wonder who’s next to join Tweeter? The Fed?
   http://www.federalreserve.gov/

3. David Says:
   August 7th, 2008 at 2:18 pm

   I wonder if there’s any way to verify that that’s the actual SEC, besides calling them up. I did a perfunctory search of SEC.gov but could find no mention of twitter.

   It got me thinking that a great scammer could pose as a goverment agency, forward a bunch of these little press releases for a few months, and gain the trust of fellow twitterers.

   Then the schemer could use twitter to “short and distort” a stock, and make his escape. Of course, he’d probably show up in the very same press releases as a small time fraudster down the road.

4. Michelle Leder Says:
   August 8th, 2008 at 12:49 pm

   I sent a note to the folks in the SEC PR department on Thursday afternoon to get some more insight into their Twittering. Here’s the questions and the answers that spokesman John Nester sent back:

   1. What prompted the decision to start Twittering?
   Nester: There’s a whole new world out there for investors who want to receive and exchange information, and the SEC is determined to be a part of it. We’ve undertaken a number of recent initiatives to shape the future of financial disclosure, not merely keep pace. For example, the SEC is leading the effort to make financial reports instantly accessible, understandable and comparable through the use of interactive data. We have also recently published guidance for companies to better communicate with investors on company web sites – more info here if you would like it. Twitter represents a new opportunity for the SEC to carry out its mission to educate individual investors because social media enthusiasts, members of the media, and individual investors are among the heaviest users. Since Twitter is an opt-in vehicle, people can choose to “follow our tweets” – and more than 200 have since we began last week.

   2. How do you decide which press releases are Twitter-worthy?
   Nester: We’re learning as we go, and will likely expand our offerings as a result.

   3. Do any of the Commissioners have their own Twitter accounts?
   Nester: No reason they won’t.