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Regulators tell exchanges to get ready for “hybrid” working -Breaking

by Mike Robinson

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© Reuters. FILE PHOTO : Wall Street is crowded with people, just outside of the New York Stock Exchange (NYSE), in New York City, U.S.A, on March 19, 2021. REUTERS/Brendan McDermid/File Photo

LONDON (Reuters), – The global securities regulators are reviewing whether they should strengthen the operational resilience of market infrastructures in the wake of extreme volatility observed in the 2020 pandemic.

Even though much of trading can be done electronically, New York Stock Exchange and London Metal Exchange had to temporarily close their floors due to high levels of volatility in trading markets since Black Monday 1987.

The International Organization of Securities Commissions (IOSCO), in a statement, stated that the current resilience requirements for clearing houses, exchanges and settlement systems have been successful. However, there are still opportunities to improve.

IOSCO is a group of market regulators representing Latin America, Europe, Asia, and Europe. It believes that automation and less dependency on manual processes are needed to make it easier for people who work from home.

Many firms’ business continuity plans did not include how to handle the loss of access to their primary and backup sites for a longer time. IOSCO released a paper that was open to public discussion.

Many business owners will likely return to a mix of staff who work from home and the office, which poses challenges similar to remote full-time working.

It stated that large-scale remote and hybrid work are relatively new to many regulatory entities. The risks and controls for these types of working are being carefully evaluated and tested.

IOSCO advised market infrastructure firms to reevaluate and revise their business continuity plans.

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