SIFMA recommended substantial changes to the SEC's proposed rulemaking on electronic recordkeeping requirements for broker-dealers, security-based swap dealers and major security-based swap participants (see previous coverage).
In their comments to the proposed rule, SIFMA recommended the following:
- eliminate third-party recordkeeping requirements, since service providers often don't have access to the data if it is encrypted;
- distinguish the term "senior officer" from the "senior officer" term that is found in various other security-based swap regulations;
- explicitly permit entities to designate multiple officers for accessing and producing records;
- permit senior officers to provide only the required records to which the officers have been designated as having access;
- adjust audit trail requirements to permit documents with tracked changes rather than requiring firms to have the ability to reproduce every iteration of a document;
- eliminate various audit trail sections, or amend them to exclude bank security-based swap entities from the new technical requirements;
- adjust various phrases and terms to provide additional clarity and technological neutrality; and
- grant entities an 18-month window to comply with the amended rules.
SIFMA asserted that its recommendations would make the regulations more technologically neutral.
Primary Sources
- SIFMA Press Release: Electronic Recordkeeping Requirements for Broker-Dealers
- SIFMA Comment Letter: Electronic Recordkeeping Requirements for Broker-Dealers, Security-Based Swap Dealers and Major Security-Based Swap Participants
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