In an era of increasing attacks on all kinds on world financial centers and market participants - especially terrorism and cyber attacks - the international Organization of Securities Commissions has released 2 timely reports designed to improve risk management and business continuity practices in world financial markets.
The International Organization of Securities Commissions has published two consultation reports aimed at further enhancing the ability of financial markets and intermediaries to manage risks, withstand catastrophic events, and swiftly resume their services in the event of disruption. The consultation report, “Mechanisms for Trading Venues to Effectively Manage Electronic Trading Risks and Plans for Business Continuity,” provides a comprehensive overview of the steps trading venues take to manage the risks associated with electronic trading and the ways they plan for and manage disruptions through business continuity plans. Iosco´s second consultation report, “Market Intermediary Business Continuity and Recovery Planning,” proposes standards and sound practices that regulators could consider as part of their oversight of the business continuity and recovery planning by market intermediaries. These practices may also prove useful to intermediaries who are developing and implementing business continuity plans.