US Futures Trading Commission looks to introduce new BCM/DR rules

Business Continuity Forum Support guidance 25999 standards 

The US Commodity Future Trading Commission is proposing to introduce new regulations affecting Business Continuity and Disaster Recovery, based on an expected standard for Designated Contract Markets and the associated Derivative Clearing Organisations. The CFTC has recommended that rule changes be put in place requiring both DCM’s and DCO’s to harden measures that aim to prevent wide scale disruption to Commodity trading arising from an event. 

The proposal makes it obligatory for DCM’s and DCO’ to maintain BCM and DR resources and plans sufficient to to meet a same day recovery time objective for all trading and clearing. It goes further and includes a requirement for geographic dispersal of infrastructure and personnel needed to achieve that aim in a move similar that seen in the early drafts of Sarbanes Oxley (SOX).  

The Commission has also recommended amendments to the guidance and acceptable practices under the BCM and DR principles for DCMs to align the these provisions with the previous application guidance applicable to DCOs.

Public Comment on the proposed regulation and amendments must be received within 30 days of publication in the Federal Register.

Comments on the proposed regulation and amendments may be made by accessing the Commission’s website.