Outsourcing of activities, Business Continuity Plan (BCP) and Disaster Recovery (DR) and Cyber Security and Cyber Resilience framework - Limited Purpose Clearing Corporation (LPCC)
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Outsourcing obligations and liability: LPCCs may outsource core IT to clearing corporations but remain primarily liable for failures and continuity. LPCCs may outsource core IT and operational activities to existing Clearing Corporations under comprehensive agreements that ensure redundancy, set selection criteria, define fees, and require service providers to meet regulatory and cybersecurity standards; the LPCC remains primarily responsible for risk management, clearing and settlement, dispute liability, business continuity, disaster recovery and must preserve regulator access while embedding indemnity and financial disincentives to prevent market disruption.
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
Outsourcing obligations and liability: LPCCs may outsource core IT to clearing corporations but remain primarily liable for failures and continuity.
LPCCs may outsource core IT and operational activities to existing Clearing Corporations under comprehensive agreements that ensure redundancy, set selection criteria, define fees, and require service providers to meet regulatory and cybersecurity standards; the LPCC remains primarily responsible for risk management, clearing and settlement, dispute liability, business continuity, disaster recovery and must preserve regulator access while embedding indemnity and financial disincentives to prevent market disruption.
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