What does SEC Regulation SCI aim to monitor?

Study for the Financial Information Associate Certificate Test with comprehensive questions, hints, and explanations. Prepare effectively and boost your confidence for the exam!

SEC Regulation SCI, which stands for "Systematic Capacity and Infrastructure," is primarily focused on overseeing the technological infrastructure of U.S. securities markets. This includes systems such as trading platforms, market data feeds, and various operational components that are critical for maintaining fair and orderly market functions. The regulation sets out requirements for key market participants to ensure that they have adequate systems in place to handle their operations robustly, preventing breakdowns that could adversely affect market integrity.

By emphasizing the reliability and resilience of technological systems, SEC Regulation SCI aims to protect against systemic risks that could arise from failures or inadequacies in technology, which is increasingly vital in today's digitally-driven financial landscape. Monitoring and assessing the technological infrastructure helps to promote confidence in the U.S. securities markets, ensuring they operate efficiently and effectively.

The other options do not align with the objectives of SEC Regulation SCI, as they focus on different aspects of finance that are outside the regulation's scope.

Subscribe

Get the latest from Examzify

You can unsubscribe at any time. Read our privacy policy