Z Systems Time Synchronization with FINRA

z Systems Time Synchronization with FINRA

IBM is alerting z Systems customers about changes required to operate in FINRA regulated industries.

Recent regulation changes announced by FINRA significantly reduce the allowable dispersion from universal time of systems processing certain financial trades. The date by which customers must meet these new regulations is staged. For some systems, compliance is required by February 20, 2017. However, it is important that all customers involved in the financial industry carefully evaluate their situation.

All currently supported z Systems machines running Server Time Protocol (STP) already contain the features required to enable the machine to meet the new regulatory timing requirements. However, it is likely that customers will have to purchase new vendor equipment to take advantage of this feature. Pulse Per Second (PPS) is a standard, together with Network Time Protocol (NTP), that provides precise notifications to connected systems so long as the PPS provider is attached to a compliant time source.

IBM is working to prepare the necessary support for addressing the audit capabilities called for in the new regulations, and will have those available shortly.

Learn more

For more information about the regulatory changes, we recommend the following document: http://www.finra.org/industry/notices/16-23

These z13 documents on Resource Link for the HMC and SE Operations guides explain all the System (Sysplex) Time panel functions, especially the ETS configuration for NTP with PPS.: https://www- 304.ibm.com/servers/resourcelink/lib03010.nsf/0/0351070EB1B67CD985257F7000487D13/$file/HMCVer sion2131.pdf https://www- 304.ibm.com/servers/resourcelink/lib03010.nsf/0/0B03044AC63DF13385257F7000488D43/$file/SEVersi on2131.pdf

The z13 Installation Manual for Physical Planning contains diagrams about where to plug in the PPS cables: https://www- 304.ibm.com/servers/resourcelink/lib03010.nsf/0/3D0FA54BD6D29C5885257DC400795260/$file/GC28- 6938-01a.pdf

If your PPS connection is healthy, then everything is pretty easy. After switching the active primary or backup server to PPS, an area will be displayed at the bottom of the ETS configuration panel called "PPS Status" that will give the status of each port. The SE Operations guide on page 792 shows the possible status values for the ports. (The HMC Operations guide covers this around page 1381.)

Also, z/OS posts IEA037I messages when the PPS cable is connected (and when it is disconnected).

 FINRA requirements are changing for customers in the financial industry  These changes are in advance of new SEC regulations.  Much tighter time synchronization is required  Pulse Per Second (PPS) is the best option for maintaining time synchronization with Universal Time (UTC)  z Systems STP already provides support for PPS  Customer awareness of this issue is critical  There may be lead time required for them to purchase, install, and configure a PPS solution  A z Systems firmware update, and/or operating system update will be required to address the audit requirements.