Five industry organizations petitioned the Securities and Exchange Commission to adopt a more principles-based and less prescriptive record-retention rule applicable to broker-dealers equivalent to an amended rule recently implemented by the Commodity Futures Trading Commission for all its registrants. The CFTC’s amended rule, approved on May 23, eliminated the CFTC’s prior requirement that (1) electronic records be maintained in their native file format and preserved exclusively in a non-rewritable, non-erasable format (commonly referred to as write once, read many or “WORM”) and (2) records holders use a third-party technical consultant to provide certain representations to the Commission regarding access to a record holder’s required electronic records. Instead, the CFTC’s amended rule solely required that all “regulatory records” be maintained in a way that “ensures the authenticity and reliability of such regulatory record” in accordance with applicable law and CFTC regulations. (Click here for general background on the CFTC’s amended rule in the article “Principles-Based Rules Rule in CFTC Record Keeping Rule Amendment” in the June 4, 2017 edition of Bridging the Week.) The five industry organizations pointed out in their petition that, without SEC relief, dual registered future commission merchants and BDs cannot take advantage of the CFTC relief. The five industry organizations are SIFMA, the Financial Services Institute, ISDA, the Financial Services Roundtable and FIA.