Article 63, Amendment To Regulation (EU) 2016/1011, Digital Operational Resilience Act (DORA)

Overview

In Article 6 of Regulation (EU) 2016/1011, the following paragraph is added:

‘6. For critical benchmarks, an administrator shall have sound administrative and accounting procedures, internal control mechanisms, effective procedures for risk assessment, and effective control and safeguard arrangements for managing ICT systems in accordance with Regulation (EU) 2022/2554 of the European Parliament and of the Council.

Summary Of Article 63

Article 63 of the Digital Operational Resilience Act (DORA) amends Regulation (EU) 2016/1011 by introducing a new paragraph in Article 6. This addition focuses on ensuring the resilience and security of critical benchmarks, which play a crucial role in the financial markets. The new provision requires that administrators of critical benchmarks implement robust administrative and accounting procedures, effective internal control mechanisms, and comprehensive risk assessment processes.

Furthermore, the amendment mandates that administrators establish effective control and safeguard arrangements specifically for managing Information and Communication Technology (ICT) systems. These measures must be in line with the security standards set forth in Regulation (EU) 2022/2554, which is part of the broader framework aimed at enhancing the digital operational resilience of financial institutions and infrastructures.

The goal of this amendment is to strengthen the operational resilience of critical benchmarks by ensuring that the entities responsible for managing them have appropriate systems and processes in place to handle ICT risks. By aligning with the security protocols of Regulation (EU) 2022/2554, this amendment ensures that critical benchmarks are better protected from digital threats, contributing to the stability and security of the financial sector.