SEC Proposes to Expand and Update Regulation SCI

The Securities and Exchange Commission today proposed amendments to expand and update Regulation Systems Compliance and Integrity (SCI), the set of rules adopted in 2014 to help address technological vulnerabilities in the U.S. securities markets and improve Commission oversight of the core technology of key U.S. securities markets entities (SCI entities). “I am pleased to support this proposal because, consistent with maintaining orderly markets, these amendments would help promote the capacity, integrity, resiliency, availability, and security of critical intermediaries,” said SEC Chair Gary Gensler. “Technology plays an expansive and expanding role supporting our market systems, and our markets would benefit if we updated Reg SCI to reflect those changes. I think it’s important also to broaden Reg SCI to include a number of key market participants and enhance the standards those market participants must meet.