The CFTC, SEC and FINRA joined together to issue a staff advisory on business continuity and disaster recovery planning.  NFA forwarded the advisory to all member FCMs in order to assist them in reviewing their procedures.

The advisory followed a joint review by regulators in the aftermath of Hurricane Sandy, which caused widespread damage to the Northeast and closed U.S. equity and options markets for two days.  The regulators are encouraging firms to review their plans and procedures in order to improve responses to and reduce recovery time after a significant event.

The advisory suggests effective practices in the following areas:

• Preparation for widespread disruption
• Planning for alternative locations
• Telecommunications services and technology
• Communication plans
• Regulatory and compliance considerations
• Reviewing and Testing

If you would like us to review your plans and procedures, feel free to give Mike a call at 630-351-8942 or email mike@cogcpa.com.