Global exchanges get together to address cyber threat
The World Federation of Exchanges has set up a Cyber Security Working Group with a “mission to aid in the protection of the global capital markets” in the wake of a number of attacks on international exchanges over the past few years.
The working group will be led by Mark Graff, chief information security officer at Nasdaq OMX and vice-chaired by Jerry Perullo, vice president of information security, at the Intercontinental Exchange.
Nasdaq OMX was the victim of an attack in 2010 when a criminal gang allegedly hacked into its systems to access personal details of corporate users that could then be used in other frauds. Five men were charged in the US in July, with prosecutors saying it was part of a scam involving details of 160 million stolen credit cards “and resulted in hundreds of millions of dollars in losses”.
Last month the Chicago Mercantile Exchange – also a member of the new initiative – said that it had been attacked in July, in which “certain customer information relating to the CME ClearPort platform was compromised”.
The working group will bring together representation a number of exchanges and clearinghouses across the globe, to collaborate on best practices in global security.
“We are tasked with a significant goal: to build universal best practices and partner with third-parties to combat systemic cyber abuse to ensure the resiliency and strength of our capital markets,” said Graff. “I look forward to addressing this head on with the founding committee and new members alike.”
In addition to developing best practices, the committee will focus on the following principles:
- Establishing a communication framework among participants based on mutual trust
- Facilitating information sharing, including threat intelligence, attack trends, and useful policies, standards and technologies
- Enhancing dialogue with policy makers, regulators and government organisations on cyber threats for fair, transparent and efficient markets
- Supporting improved defences from both external and internal cyber-based threats against the markets.
The founding committee members include: Australian Securities Exchange, BM&F BOVESPA, CME Group, The Depository Trust & Clearing Corporation, IntercontinentalExchange, International Securities Exchange, Nasdaq OMX, NYSE Euronext\ICE, Saudi Stock Exchange, Singapore Exchange, SIX Swiss Exchange and the Toronto Stock Exchange.