From “flash crashes” to flash flooding, the Securities and Exchange Commission on Thursday issued a proposed rule intended to ensure the stability and resiliency of the securities marketplace when unexpected events strike.
The proposed rule, Regulation SCI (the acronym for stands for “systems, compliance and integrity”) would require “entities essential to the smooth functioning of the U.S. securities markets,” including exchanges and clearing houses, to have comprehensive policies and procedures in place to maintain and secure their technology. It requires that: systems have adequate capacity, integrity, resiliency, availability, and security; operate in the manner intended; and are well-positioned to promptly take appropriate corrective action when problems arise.
