FINRA – Requested Comments on Broker Dealer (B/D) cloud computing report

August 16, 2021 – FINRA requested comment on new report, Cloud computing in the securities industry. Report was issued by office of financial innovation (OFI) following review of almost 40 B/D firms, cloud service providers, industry analysts, as well as technology consultants. Purpose to better understand implications of cloud computing on securities industry.

Cloud Computing Report: Noted diversity of cloud computing models among B/Ds raised challenges as well as opportunities. Common themes included a prevalent use of software as a service (SaaS) products. Rollouts of cloud infrastructure tended to be targeted, incremental, and iterative. Firms focused heavily on governance, cloud security, and training in a cloud environment. Organizational and cultural changes often accompanied cloud adoptions. Outlined regulatory factors for those operating or migrating to the cloud to consider. Factors: cybersecurity, data privacy, outsourcing/vendor management, and records. Comments requested on areas where guidance/modifications to rules may be desired to support cloud adoption while maintaining investor protection and market integrity.

Effectiveness: Comments on the report are requested by October 16, 2021.

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