European Banking Federation pushing for global policy on cybersecurity
The European Banking Federation (EBF), the Global Financial Markets Association (GFMA) and the International Swaps and Derivatives Association (ISDA) are planning global policy measures on cybersecurity, data and technology through a new set of common principles.
In its paper, “International Cybersecurity, Data and Technology Principles”, the organisations want to create a “starting point for dialogue with policy-makers, industry and other stakeholders at the global level”.
The groups are submitting their principles to the Financial Stability Board (FSB) and the International Organization of Securities Commissions (IOSCO).
They note in the paper that “countries and jurisdictions tackling risks do not create rules that inadvertently force global businesses to fragment their technology systems, impeding competition and innovation and thereby harming investors.”
The organisations highlight two “crucial” issues to create “effective” policy-making.
First, cybersecurity, data protection and technological advancement are “international issues requiring global solutions”.
Second, cybersecurity threats, risks, and the technology that “mitigate them shift faster than regulations and standards can respond”.
The paper concludes the best approach for developing policies is “open and transparent” formulation and implementation, which “allows stakeholders to provide meaningful input to regulators”.
It also says policies “must allow companies to conduct their own risk assessments and determine what technology best meets their security needs”.
EBF was launched in 1960. It comprises 32 national banking associations in Europe that together represent some 4,500 banks.
GFMA brings together three financial trade associations to address global regulatory issues. These include the Association for Financial Markets in Europe (AFME) in London and Brussels; the Asia Securities Industry & Financial Markets Association (ASIFMA) in Hong Kong; and the Securities Industry and Financial Markets Association (SIFMA) in New York and Washington.
ISDA has over 850 member institutions from 67 countries. These members comprise a “broad” range of derivatives market participants; including corporations, investment managers, government and supranational entities, insurance companies, commodities firms, and international and regional banks.