US Securities and Exchange Commission (SEC) commissioner Luis Aguilar said the Commission needs to broaden the reach of Regulation Systems Compliance and Integrity (Reg SCI) while speaking at the Security Innovation Network (Sinet) Innovation Summit in New York.
Passed in November 2014 and requiring certain market participants — self-regulatory organizations, some alternative trading systems, plan processors and certain clearing agencies — to have comprehensive policies and procedures in place regarding cyber security, Reg SCI needs to encompass more areas of the markets, the commissioner argued.
"Reg SCI doesn't apply to many important segments of the capital markets. For example, it doesn't apply to over-the-counter market makers, stockbrokers, or transfer agents," he said. "Obviously, more work is needed to ensure that the Commission's cybersecurity rules address all key areas of the market we regulate."
"The Commission needs to expand the scope of Reg SCI to reach other crucial market participants. This should be a top priority," Aguilar later added.
For more information on Reg SCI, and the impact the regulation will have on the industry when it comes into effect this November, click here.
While at Sibos Toronto, James shares some interviews covering topics on blockchain, fintechs and cybersecurity.Subscribe to Weekly Wrap emails