SEC proposes comprehensive cybersecurity rules for financial markets and firms.

The Securities and Exchange Commission (SEC) has proposed new requirements for Market Entities, including broker-dealers, clearing agencies, and national securities exchanges, to address their cybersecurity risks. The proposal would require all Market Entities to implement policies and procedures that are reasonably designed to address their cybersecurity risks and review and assess the effectiveness of their cybersecurity policies and procedures at least annually. The proposal also includes new notification and reporting requirements to improve the Commission's ability to obtain information about significant cybersecurity incidents affecting these entities and improve transparency about the cybersecurity risks that can cause adverse impacts to the U.S. securities markets.