FINRA updated the criteria under Regulation SCI (Systems Compliance and Integrity)to designate firms for mandatory participation in FINRA's annual business continuity and disaster recovery ("BC/DR") testing. The updates now include firms that report a significant volume of transactions in U.S. Treasury Securities.
Pursuant to the updated criteria, FINRA will designate participants that account for at least 5 percent or more of the average dollar volume over the six-month period immediately preceding such designation, provided that the cumulative dollar volume represented by designated firms amounts to at least 50 percent of all dollar volume in Treasury securities reported during the applicable six-month period. FINRA expects that the designation of firms will take place in April of this year and the testing will occur in October.
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