Cybersecurity
SEC Proposes New Exchange Tests to Curb Computer Breakdowns
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U.S. exchanges and some brokers will be required for the first time to conduct coordinated trading tests to show they can recover from natural disasters or terrorist acts, according to a rule proposed by regulators.
The mandate, called Regulation Systems Compliance and Integrity, directs exchanges to strengthen their technology and instruct member firms to participate in tests to show they can sustain operations after a large disruption. The rule published last month covers testing, disaster preparedness and software development. It will govern 44 firms including 17 exchanges.