April 10, 2013 – Nasdaq OMX Group said that the storage services of its FinQloud online computing platform has been deemed capable of saving trading records in accordance with requirements of federal securities and derivatives regulators.
The exchange operator said that the FinQloud platform had been rated as in compliance with federal record-keeping requirements by both Cohasset Associates, a Minneapolis management consulting firm, and Jordan & Jordan, a securities industry consultant based in New York. The firms assessed the capabilities and compliance of the Regulatory Records Retention (R3) storage of FinQloud, a “cloud” services that operates in conjunction with Amazon Web Services and the Amazon Simple Storage System.
The R3 service, the consulting firms said, meets the electronic records storage, retrieval and management requirements of:
- Securities and Exchange Commission Rule 17a-4(f), which regulates exchange members, brokers or dealers.
- Commodity Futures Trading Commission Regulation 17 C.F.R. §1.31(b)-(c), which regulates commodity futures trading.
Cohasset said FinQloud adequately preserves records in “a non-erasable, non-rewriteable format” and with “a highly secure deletion process.” Records also are automatically verified and “uniquely” serialized. That can only be applied to records and associated metadata files when the retention period has expired and where any legal hold has been released. A comprehensive set of audit trail events, related to each record, are also kept, it said. Jordan & Jordan had similar findings and noted that FinQloud kept original records separate from duplicate copies.
Jordan & Jordan said, the R3 platform, when used as intended, provides broker-dealers with the necessary tools to fully meet all their SEC Rule 17a-4 obligations and, in addition, R3 satisfies the CFTC’s definition of an “electronic storage medium” making it suitable for use in meeting the requirements of CFTC Rule § 1.31.”
Separately, Nasdaq OMX said it enhanced its UltraFeed market data service to include U.S. equity market depth data from Nasdaq OMX, NYSE Euronext, Direct Edge and BATS exchanges. Included now in UltraFeed is TotalView, a product that displays the Nasdaq Stock Market's full order book.
This story originally appeared at Securities Technology Monitor.
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