The SEC Division of Trading and Markets (the "Division") issued two new FAQs relating to the electronic recordkeeping requirements adopted under SEA Rule 17a-4 ("Records to be preserved by certain exchange members, brokers and dealers").
The Division said that broker-dealers and security-based swap dealers may use an audit-trail alternative to the "write once, read many" ("WORM") requirement to store electronic records any time after the effective date of January 3, 2023. The compliance date is May 3, 2023.
In addition, the Division said that a firm may use a designated executive officer, instead of a designated third party, to provide the SEC with the necessary information to access its electronic records any time after the rule's effective date.
