The Securities Industry Association (SIA)* provides comments to the Securities Exchange Commission (SEC) on a proposal relating to modernizing the SEC’s electronic storage rule. The storage solutions that meet the technical requirements of the current rule inadequately store the volume of electronic documents. The technology mandated by the SEC prevents firm compliance with other regulations, industry initiatives and internal risk management practices. The SIA suggests the SEC to adopt a document integrity rule in lieu of a storage technology rule. This approach would have the added benefit of providing some auditable safeguards around the whole transfer process instead of just the ultimate storage destination.

*SIFMA is the product of a merger between the Securities Industry Association (SIA) AND The Bond Market Association (TBMA) in 2006.