The Securities and Exchange Commission has approved rules proposed by NASD and the New York Stock Exchange, which require NASD and NYSE members to develop business continuity plans that establish procedures relating to an emergency or significant business disruption.

Under the new rules, every NASD and NYSE member must develop a plan that addresses various aspects of business continuity, including data back-up and recovery, mission critical systems, and alternate communications between the firm and its employees and the firm and its customers.

In addition, the SEC reports, a member’s business continuity plan must address how the member will assure its customers’ prompt access to their funds and securities in the event that the member determines that it is unable to continue its business. Every NASD and NYSE member also will be required to disclose to its customers a summary of its business continuity plan that addresses how the member intends to respond to potential disruptions of varying scope.

The SEC says that it believes it is important for securities firms to take concrete steps to strengthen their resilience and to address the continuing risks to the U.S. financial system posed by the post-September 11 environment. “The recently-approved business continuity rules should help achieve that goal for individual firms and the securities industry as a whole,” it says.