The Financial Industry Regulatory Authority has issued guidance to state that firms reporting a “significant volume” of transactions in Treasury securities to TRACE must now participate in FINRA’s annual business continuity and disaster recover test.
In 2015, FINRA adopted Rule 4380, requiring member firm participation in business continuity and disaster recovery (BC/DR) testing.
The rule authorizes FINRA to designate firms that must participate in FINRA’s annual BC/DR test based on established standards, which FINRA published in Regulatory Notice 15-43.
Since FINRA published Notice 15-43, the broker-dealer regulator started collecting transaction reports for U.S. Treasury securities.