From the Regulators

The goal is to help firms prepare for new compliance requirements

By James Langton |

U.S. regulators are launching an outreach program for exchanges, alternative trading systems (ATS), market data providers and clearing firms, to help them comply with new rules designed to shore up the trading technology infrastructure.

The U.S. Securities and Exchange Commission (SEC)'s Office of Compliance Inspections and Examinations (OCIE) Technology Controls Program and the SEC's Division of Trading and Markets are co-sponsoring the compliance outreach program, which is targeted at chief information officers, chief information security officers, and other senior personnel responsible for enhancing their firms' systems compliance and integrity programs.

The programs, which will be held on July 16 at the SEC's New York office and at its Chicago office on July 29, will include  discussions on the regulatory framework, firms' compliance obligations, and the monitoring and examination processes.

The SEC adopted the rule, known as Regulation SCI, last year and many of its compliance requirements are slated to take effect in the fall. Under the rules, firms such as exchanges and ATSs are required to have comprehensive policies and procedures for their technological systems, to conduct business continuity testing, and to annually review their automated systems and take appropriate corrective action when system issues occur.

"The compliance outreach program provides an opportunity for the SEC and regulated entities to discuss compliance issues associated with Regulation SCI," said Marc Wyatt, acting director at the OCIE. "We look forward to exchanging information and discussing ways to strengthen the technology infrastructure of the U.S. securities markets."