The Securities and Exchange Commission (SEC) has requested approval from the Office of Management and Budget (OMB) to extend a rule that requires key market players to maintain robust and secure technological systems. This rule, known as Regulation SCI, involves collecting information to ensure market stability and includes specific requirements for reporting technological events and improvements to the SEC. Currently, 48 entities are subject to this rule, with the number expected to increase over the next three years. The regulation aims to enhance the resilience of the U.S. securities market and ensure compliance with federal securities laws, incurring costs and compliance efforts from the involved entities.
Simple Explanation
The SEC wants to keep the tech systems of important market players safe and strong, so they have a rule called Regulation SCI, which is like a checklist to make sure everything stays stable and smooth. They are checking to see if this rule should continue as more players join, and they're talking about how much it might cost and what the benefits could be.