Versions

 

Regulatory Notice 4.1 — Adequacy of Systems

1. Introduction
1.1 In accordance with Rule 4.1, a Trading Member must ensure that its systems and connections to the Trading System operate properly at all times, and have adequate redundancy and scalable capacity to accommodate current and anticipated trading volume levels.
2. Planning and Assessment Programs to Ensure Adequacy
2.1 In ensuring the adequacy of systems and connections to the Trading System, Trading Members should establish comprehensive planning and assessment programs to test system operation, capacity and security. Trading Members should also have in place arrangements for the employment of appropriate technical expertise to maintain and operate systems and connections to the Trading System.
2.2 The scope of such programs should cover:
(a) the establishment of capacity estimates for systems performing automated order routing, execution and market data functions. Such estimates should be based on a suitably long look-back period and historical activity;
(b) assurance that the system and its functions, including risk controls and error-prevention alerts, have been tested in accordance with prudent business practices before use and following any material change;
(c) periodically conducting capacity stress tests to determine the behaviour of automated systems under a variety of simulated conditions;
(d) seeking on a periodic basis the assessment of independent reviewers with regard to whether Trading Members' systems are performing adequately and whether these systems have adequate security. Such independent reviewers may be any persons not involved in the operation of Trading Members' systems who have sufficient technical expertise; and
(e) implementation of policies for the hiring and training of qualified technical personnel.
2.3 The programs described in paragraph 2.2 may be established under outsourcing arrangements where appropriate. Members continue to be responsible for ensuring that the respective requirements are adequately met under the outsourcing arrangements.

Added on 3 June 20193 June 2019.