New Cyber Security Committee Will Identify and Share Global Information Security Best Practices in the Protection of Market Infrastructures
The World Federation of Exchanges (WFE), a 62-member trade association for operators of regulated financial exchanges, has launched a new cyber security committee designed to help members from the exchange industry protect against cyber threats targeting the global capital markets.
According to the WFW, the Cyber Security Working Group will bring together representatives from a number of exchanges and clearinghouses across the globe, to collaborate on best practices in cybersecurity.
The group will be chaired by NASDAQ OMX CISO Mark Graffand vice-chaired by Jerry Perullo, Vice President, Information Security at Intercontinental Exchange (ICE).
Founding committee members include:
• Australian Securities Exchange
• CME Group
• The Depository Trust Clearing Corporation (DTCC)
• Deutsche Boerse
• IntercontinentalExchange (ICE)
• International Securities Exchange (ISE)
• NASDAQ OMX
• NYSE Euronext \ ICE
• Saudi Stock Exchange
• Singapore Exchange
• SIX Swiss Exchange
• Toronto Stock Exchange
According to the WFE, the Cyber Security 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 organizations on cyber threats for fair, transparent and efficient markets;
• Supporting improved defenses from both external and internal cyber-based threats against the markets.
“I’m proud to be working with an array of some of the brightest information security officers who in the exchange industry around the world,” said Graff. “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. I look forward to addressing this head on with the founding committee and new members alike.”
A “significant” number of stock exchanges have been hit by cyber-attacks over the past year, according to a survey from the International Organization of Securities Commissions and WTE, released in July 2013.
The survey showed that about 53 percent of exchange had been hit by a cyber-attack. Of the 46 exchanges around the world included in the survey, nearly a quarter of the exchanges who had been attacked were in the Asia-Pacific region.
“While there is uncertainty around the size of the cyber-crime threat in securities markets, there are clear signs that it is a growing threat to the financial sector, with potential for large costs,” the study’s co-authors, Iosco’s Rohini Tendulkar and WFE’s Gregoire Naacke, noted at the time.
“The creation of this committee group is a significant milestone for the global exchange community,” said Ravi Narain, Chairman of the Working Committee. “Cyber security is a crucial issue to global markets, and paramount for maintaining market integrity and resiliency. We are pleased with the positive collaboration in this committee, which will transcend competitors and regions in order to tackle key issues and present best practices, and we believe that the formation will universally benefit the financial markets of the world.”
Related Reading: Cyber Attacks Against Stock Exchanges Threaten Financial Markets
Managing Editor, SecurityWeek.Previous Columns by Mike Lennon:Verizon to Publish Report on Government Demands for User DataGlobal Stock Exchanges Form Cyber Security Committee Target Hacked: Confirms 40 Million Payment Cards Affected in Massive Data Breach Hackers Accessed Employee Login Data From Washington Post ServersBlue Coat Acquires Malware Analysis firm Norman Shark