The Securities and Exchange Commission is reviewing a proposal from The Depository Trust Company (DTC) to amend its rules regarding disruptions to participant systems. These changes aim to clarify definitions, improve notification procedures, and update governance for handling major disruptions. The proposed adjustments also include new requirements for reporting and system "reconnection" after a disruption. The DTC hopes these updates will enhance the ability to manage risks and ensure smoother operation during system interruptions.
Simple Explanation
The SEC is checking out a new plan from a company that keeps track of who owns stocks to make sure they handle problems better when their computers break. The rules will help them tell people faster about problems and fix things so everything runs smoothly again.