• SEC Proposes Regulation Systems Compliance and Integrity (“Regulation SCI”)
  • April 3, 2013
  • Law Firm: Alston Bird LLP - Atlanta Office
  • On March 8, 2013, the U.S. Securities and Exchange Commission (SEC) issued a release proposing new Regulation Systems Compliance and Integrity (“Regulation SCI”) and amendments to Regulation ATS under the Securities and Exchange Act of 1934 (“Exchange Act”). As proposed, Regulation SCI would require “SCI entities” (e.g., certain selfregulatory organizations (SROs), alternative trading systems (ATSs), plan processors and exempt clearing agencies) to comply with capacity, integrity, security and testing requirements with respect to their automated systems that support their regulated activities. According to the SEC, the Regulation and related amendments are needed to formalize current SEC inspection programs and standardize industry efforts in this area, address the increased use of technology in securities trading and routing and the resulting complexities in the markets, and help prevent systemsrelated issues that can harm the fair and orderly operation of the markets. Comments on proposed Regulation SCI are due on or before May 24, 2013.