- Securities Information Processor (SIP): The SROs and SIP Committees have compiled a series of proposals designed to improve operational resiliency, strengthen interoperability standards and disaster recovery capabilities, enhance governance, accountability and transparency and establish a clear testing framework for the industry. These proposals set out a process for sharing best practices, reviewing policies and procedures of all Operating Committees, and updating technology change procedures, as well as improving audit and assessment processes.
- Critical Infrastructure: The SROs have established a pathway to identify contingencies related to critical infrastructure items such as essential regulatory messaging (LULD, SSR, Halts), the open/close of the markets, initial public offerings, DTCC/OCC outages, singly-listed options and industry testing and connectivity to exchange disaster recovery facilities.
- Halts/Resumptions: The SROs have agreed to three core principles for halting the equities and options market (transparency, limited discretion, and the coordination of halts/resumptions by the primary markets) and proposed rules and metrics incorporating these key principles are under consideration among the SROs.
- Trade Breaks: The SROs are reconciling trade-break rules among the exchanges for both equities and options markets. Subsequent changes will be submitted in a series of rule proposals for public comment and SEC approval.
- Kill Switch: Work continues in the equities markets on a year-long industry effort to reach a consensus on a proposed common “kill switch” functionality to prevent risk and disruption to the markets. Likewise, the options exchanges have agreed to each refine and enhance their existing kill switch functionality. In addition to kill switches, the options exchanges also agreed to enhance or develop functionality for price filters, drill-through protections, and activity-based kick outs.
Self-Regulatory Organizations Response To SEC For Strengthening Critical Market Infrastructure
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