The Securities and Exchange Commission (SEC) has proposed some guidelines that will allow capital market operators and investors to digitize all of their processes.
The requirements are contained in the Minimum Operating Standards for Information Technology for capital market operators recently exposed to the public, released by the SEC.
The commission argued that rules establishing basic market operating criteria were essential due to the increasing reliance of financial services and related companies on technology.
SEC said the guidelines would establish a threshold for operational efficiency in the market through effective adoption of Information Technology (IT) in driving businesses to ensure security, confidentiality, integrity and reliability of information systems.
The SEC said, ”This will help operators harness the huge benefits derivable from the adoption of technology and also manage the attendant cyber-security threats and other risks that accompany the use of technology.”
”It will also positively impact on the effectiveness and efficiency of the Commission to monitor and regulate all capital market operators in the market,” the SEC added.
The Commission stated that the document’s requirements would apply to all types of CMOs, else in places where specific kinds of operators were mentioned.