---
kind: "section"
citation: "17 C.F.R. § 37.1400"
title: "17"
number: "37.1400"
heading: "Core Principle 14—System safeguards."
url: "https://uscodex.org/cfr/17/37.1400"
---

# §37.1400. Core Principle 14—System safeguards.


The swap execution facility shall:

- (a) Establish and maintain a program of risk analysis and oversight to identify and minimize sources of operational risk, through the development of appropriate controls and procedures, and automated systems, that:
  - (1) Are reliable and secure; and
  - (2) Have adequate scalable capacity;
- (b) Establish and maintain emergency procedures, backup facilities, and a plan for disaster recovery that allow for:
  - (1) The timely recovery and resumption of operations; and
  - (2) The fulfillment of the responsibilities and obligations of the swap execution facility; and
- (c) Periodically conduct tests to verify that the backup resources of the swap execution facility are sufficient to ensure continued:
  - (1) Order processing and trade matching;
  - (2) Price reporting;
  - (3) Market surveillance; and
  - (4) **Maintenance of a comprehensive and accurate audit trail.**

## Notes

### Authority

Authority: 7 U.S.C. 1a, 2, 5, 6, 6c, 7, 7a-2, 7b-3, and 12a, as amended by Titles VII and VIII of the Dodd-Frank Wall Street Reform and Consumer Protection Act, Pub. L. 111-203, 124 Stat. 1376.

### Source

Source: 78 FR 33582, June 4, 2013, unless otherwise noted.