Capital Markets - updated on Mar 19 at 05:08 pm
The Brazilian Securities and Exchange Commission informs about a possible contingency plan by market intermediaries due to overload of IT operations in their system
The Brazilian Securities and Exchange Commission (CVM), through the Department of Relations with the Market and its Intermediaries (SMI), recently released the Circular Letter No. 02/2020 with recommendations to the market intermediaries regarding the establishment of a contingency plan for their IT Operations due to a possible system jam caused by the spread of COVID-19 (coronavirus). Normally in situations like these, the volume of operations tends to increase and may exceed the capacity supported by the current IT system of the market intermediary that is active in the capital market.
Due to the scenario caused by coronavirus, other situations may occur, such as performing telephone operations or even the increase of market intermediaries working remotely.
Furthermore, it is possible that, if the coronavirus scenario worsens, a major part of the market intermediaries’ workforce will have to work remotely due to health security.
Therefore, CVM provides guidelines to these market participants, who must be ready for these risk events by preparing a contingency plan that contains the alternative solutions so that the market intermediaries continue providing its services accordingly. This measure must be discussed and approved by the market intermediaries’ senior management, informed to its employees and establishment of the form, content and timing for the possible announcement of this information to its clients and to the public.