Inside TDV - The Data Vault Blog
Dodd-Frank Act Records Regulations Take Effect Feb. 19
The Dodd-Frank Reform and Consumer Protection Act signed into law on July 21, 2010, was done with the intention of protecting against financial crises and consumer protection in the wake of the late-2000s recession. Whether the sweeping regulatory reform it encompasses will do that remains to be seen, but one thing is for sure: It has created a lot of extra work.
Coming up on Feb. 19 is a deadline within Dodd-Frank that will directly affect futures commission merchants (FCMs), certain introducing brokers (IBs), retail foreign exchange dealers (RFEDs) and others, regarding how long they retain transaction records and what types of records. The “Adaptation of Regulations to Incorporate Swaps – Records of Transactions” portion of the reform requires that traders maintain specific records for a minimum of five years.
What does this mean? Well, for those dealing directly with storing these records, it means more “Big Data.” It also means an increased need for brokers to figure out an effective, secure and efficient way to back up ever-increasing amounts of this data. Big. Data. If you are in the business of Commodity Futures Trading, you’ve already digested the new requirements. And we wouldn’t put it past the federal government to hit non-compliers with penalties.
If you are in the business and are somehow unfamiliar with this aspect of the Dodd-Frank Act, well, time is running out. You’d better take a close look at this paragraph, pulled from the Commodity Futures Trading Commission’s site: “This final rule also requires FCMs, IBs, RFEDs, and all members of a DCM or SEF to record and keep all written communications provided or received concerning quotes, solicitations, bids, offers, instructions, trading, and prices, that lead to the execution of a transaction in a commodity interest or related cash or forward transactions, whether communicated by telephone, voicemail, facsimile, instant messaging, chat rooms, electronic mail, mobile device, or other digital or electronic media, and to keep those written records for five years.”
Kind of makes your head spin, doesn’t it? Well, if time is running out on you, it is probably time to look at a scalable cloud backup and recovery solution such as TDV Cloud, powered by Asigra. And you’d probably better do it soon.