[Encarnacion Stirr]

The modern commodities trading firms are tech savvy with newer technological platforms and they take no time to upgrade their existing facilities to incorporate the newer features. Consider the computer/communication infrastructure put in place to ensure completion of transactions at lightning speed by the regulatory authority. The regulatory authority's central monitoring system comprises of an IBM mainframe system with a back-up facility and a remote disaster back-up site. Only the regulatory authority and its major business partners use the high cost computer hardware, software and communication systems that match industry standards.

Consider the following features:
• Machine-level back up: The IBM mainframe situated at the regulatory authority's central office has adequate redundancy built into its configuration.
• Processing switches over to the standby central processing unit (CPU) in the event of a failure in the main CPU. The disk has RAID implementation, which ensures that a single point failure will not lead to loss in data. The system has spare disk configuration wherein data is automatically copied from the main disk upon encountering the first failure (due to RAID implementation – first failure does not result in loss of data)
• Online redundancy: All network components like router, communication controllers etc., have online redundancy and thus a failure does not result in loss of transaction
• Disaster back-up site: It is equipped with a computer identical to the mainframe computer and computing resources at a remote location

Consider the back up available in the event of a power failure. The dual uninterrupted power supply (UPS) has been made mandatory for the IBM-mainframe system and its related components to meet such an eventuality. If the primary UPS fails, the secondary UPS takes over instantaneously. Thus, there is no interruption in operation due to the availability of a back-up diesel generator set.

Through periodic review, the hardware, software and communication systems maintained by the regulatory authority are reviewed continuously in order to make them more secure. These reviews are part of an ongoing exercise wherein the security considerations are given much importance in addition to its operational efficiency.