When assessing risks to financial stability, it is important to appreciate that the investment funds sector has its own unique risks relative to other markets, including fire sales of fund assets; investor herding; unintentionally synchronized actions by managers due to industry interconnectedness; and exacerbated trends resulting from automated trading strategies. Recognizing these dangers and protecting market stability require regulators to not only vigorously monitor the market, but also to acquire and share information on fund portfolios. These points came across in a recent speech delivered by Scott Bauguess, Acting Director and Chief Economist of the SEC’s Division of Economic and Risk Analysis. This article summarizes the key takeaways from Bauguess’ talk. For more on systemic risk, see “FSB Recommends Essential Risk Mitigation Requirements for Asset Managers” (Aug. 25, 2016); and “FSOC Report Focuses on Liquidity, Leverage and Other Risks Facing Hedge Fund and Asset Managers” (Apr. 28, 2016).