An investment firm subject to SEC Rule 17a-4 is designing a cloud solution to store daily trading records. Compliance requires that electronic records be retained in a write-once, read-many (WORM) or audit-trail system that prevents alteration before the retention period ends, and that the records remain "easily accessible" for the first 2 years but may be moved to a lower-cost tier for the remainder of the mandatory 6-year retention period.
Which storage strategy BEST satisfies these requirements while controlling long-term cost?
Enable Object Lock in compliance mode on a versioned object-storage bucket, keep each object in the standard tier for 730 days, then use a lifecycle rule to transition it to an immutable archive tier for the remainder of the 6-year retention period.
Take block-storage snapshots every day, retain each snapshot for 6 years, and periodically export a monthly snapshot copy to cold storage.
Store the files on an encrypted SAN volume replicated to a secondary data center and copy daily incremental backups to tape vaulted off-site for 6 years.
Upload the files to object storage with server-side encryption and enable cross-region replication to a bucket in another continent after 2 years.
SEC Rule 17a-4 permits electronic storage only if the records are immutable (either WORM or an audit-trail system) and remain "easily accessible" for the first two years of the six-year retention period. Using a versioned object-storage bucket with Object Lock set to compliance mode meets the immutability mandate. Keeping objects in the standard (hot) tier for 730 days fulfills the accessibility window; a lifecycle rule can then transition the locked objects to an archive tier such as Glacier Deep Archive for the remaining four years. Object Lock protection is preserved across lifecycle transitions, so the records stay tamper-proof at the lowest possible storage cost. The other choices fail to meet one or more requirements: SAN plus tape does not guarantee WORM or two-year online access; simple cross-region replication adds redundancy but not immutability; and block-storage snapshots can be altered or deleted and are cost-inefficient for years-long retention.
Ask Bash
Bash is our AI bot, trained to help you pass your exam. AI Generated Content may display inaccurate information, always double-check anything important.
What does Object Lock in compliance mode do?
Open an interactive chat with Bash
What is the difference between a hot storage tier and an archive tier?
Open an interactive chat with Bash
How do lifecycle rules in object storage work?
Open an interactive chat with Bash
CompTIA Data+ DA0-002 (V2)
Data Governance
Your Score:
Report Issue
Bash, the Crucial Exams Chat Bot
AI Bot
Loading...
Loading...
Loading...
Pass with Confidence.
IT & Cybersecurity Package
You have hit the limits of our free tier, become a Premium Member today for unlimited access.
Military, Healthcare worker, Gov. employee or Teacher? See if you qualify for a Community Discount.
Monthly
$19.99 $11.99
$11.99/mo
Billed monthly, Cancel any time.
$19.99 after promotion ends
3 Month Pass
$44.99 $26.99
$8.99/mo
One time purchase of $26.99, Does not auto-renew.
$44.99 after promotion ends
Save $18!
MOST POPULAR
Annual Pass
$119.99 $71.99
$5.99/mo
One time purchase of $71.99, Does not auto-renew.
$119.99 after promotion ends
Save $48!
BEST DEAL
Lifetime Pass
$189.99 $113.99
One time purchase, Good for life.
Save $76!
What You Get
All IT & Cybersecurity Package plans include the following perks and exams .