IOSCO Publishes Two Consultation Reports on Business Continuity Plans for Trading Venues and Intermediaries

IOSCO published two consultation reports intended to enhance the ability of financial markets and intermediaries to "manage risks, withstand catastrophic events, and swiftly resume their services" in the event of disruption.

The first consultation report, "Mechanisms for Trading Venues to Effectively Manage Electronic Trading Risks and Plans for Business Continuity," provides an overview of the steps that trading venues can take to manage the risks associated with electronic trading. The report also provides recommendations to help regulators ensure that trading venues are able to manage a broad range of evolving risks, and proposes several sound practices that should be considered by trading venues as they develop and implement risk mitigation mechanisms and business continuity plans.

The second consultation report, "Market Intermediary Business Continuity and Recovery Planning," proposes standards and practices that regulators should consider as part of their oversight of market intermediaries' business continuity and recovery planning.

Comments on the consultation reports are due by June 6, 2015.

See: IOSCO Press Release; "Mechanisms for Trading Venues to Effectively Manage Electronic Trading Risks and Plans for Business Continuity"; "Market Intermediary Business Continuity and Recovery Planning."