An article was recently posted on the ContinuityCentral website stating that the U.S. National Futures Association (NFA) has imposed a monetary sanction of $75,000 against Capital Market Services, LLC (CMS), a Futures Commission Merchant located in New York.
Organizations who have not fully signed up to address the compliancy issues stemming from the regulatory related business continuity requirements which may affect those organizations, need to read about this recent case.
In this case, and as stated in the article, “…the complaint alleged that CMS failed to implement adequate business continuity and disaster recovery plans and that CMS failed to report all system outages experienced by the firm to its customers and NFA. These outages left customers unable to enter new orders or manage their existing orders. In addition, the Complaint charged CMS with failing to adequately supervise the use of its electronic trading platforms.”
Be sure to also view the referenced case report to see more details and information surrounding this NFA Business Conduct Committee decision.
Is your organization potentially bound by similar or other industry related compliance requirements (e.g. U.S. critical infrastructure ranked concerns) regarding your company having an adequate business continuity plan in place, tested and improved upon to reflect the changing environment in which the company operates?
Click here to read this short article.
If applicable, please pass this information along to your executive risk management team or committee for their review.