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August 16, 2021 at 02:30 PM
What You Need to Know
- FINRA is asking broker-dealers for feedback by Oct. 16.
- The report follows a review of nearly 40 broker-dealer firms.
- FINRA wants BDs to also weigh in on where guidance or modifications to FINRA rules could support cloud adoption.
The Financial Industry Regulatory Authority is asking broker-dealers for feedback by Oct. 16 on how cloud computing models are transforming how they operate.
FINRA just released a report, “Cloud Computing in the Securities Industry,” issued by its Office of Financial Innovation (OFI), following a review of nearly 40 broker-dealer firms, cloud service providers, industry analysts and technology consultants, to better understand the implications of cloud computing on the securities industry.
The report also highlights the importance for firms to consider relevant regulatory factors for maintaining investor protection and market integrity, FINRA said Monday.
Measured by the revenues earned by public cloud providers, the size of the cloud market is projected to reach $307 billion in 2021, from $182 billion in 2018 — a 19% average annual growth rate from 2018 to 2021, the report notes.
FINRA is seeking comments on the report, including areas where guidance or modifications to FINRA rules may be desired to support cloud adoption while maintaining investor protection and market integrity.
