Page:United States Statutes at Large Volume 124.djvu/1799

 124 STAT. 1773 PUBLIC LAW 111–203—JULY 21, 2010 ‘‘(A) establish and maintain a program of risk analysis and oversight to identify and minimize sources of oper- ational risk, through the development of appropriate con- trols and procedures, and automated systems, that— ‘‘(i) are reliable and secure; and ‘‘(ii) have adequate scalable capacity; ‘‘(B) establish and maintain emergency procedures, backup facilities, and a plan for disaster recovery that allow for— ‘‘(i) the timely recovery and resumption of oper- ations; and ‘‘(ii) the fulfillment of the responsibilities and obligations of the security-based swap execution facility; and ‘‘(C) periodically conduct tests to verify that the backup resources of the security-based swap execution facility are sufficient to ensure continued— ‘‘(i) order processing and trade matching; ‘‘(ii) price reporting; ‘‘(iii) market surveillance; and ‘‘(iv) maintenance of a comprehensive and accurate audit trail. ‘‘(14) DESIGNATION OF CHIEF COMPLIANCE OFFICER.— ‘‘(A) IN GENERAL.—Each security-based swap execution facility shall designate an individual to serve as a chief compliance officer. ‘‘(B) DUTIES.—The chief compliance officer shall— ‘‘(i) report directly to the board or to the senior officer of the facility; ‘‘(ii) review compliance with the core principles in this subsection; ‘‘(iii) in consultation with the board of the facility, a body performing a function similar to that of a board, or the senior officer of the facility, resolve any conflicts of interest that may arise; ‘‘(iv) be responsible for establishing and admin- istering the policies and procedures required to be established pursuant to this section; ‘‘(v) ensure compliance with this title and the rules and regulations issued under this title, including rules prescribed by the Commission pursuant to this section; ‘‘(vi) establish procedures for the remediation of noncompliance issues found during— ‘‘(I) compliance office reviews; ‘‘(II) look backs; ‘‘(III) internal or external audit findings; ‘‘(IV) self-reported errors; or ‘‘(V) through validated complaints; and ‘‘(vii) establish and follow appropriate procedures for the handling, management response, remediation, retesting, and closing of noncompliance issues. ‘‘(C) ANNUAL REPORTS.— ‘‘(i) IN GENERAL.—In accordance with rules pre- scribed by the Commission, the chief compliance officer shall annually prepare and sign a report that contains a description of— Tests. Procedures.