Cyber Security is the Biggest Threat to Markets: Study
Cyber security is the greatest threat to markets and governments around the world, according to the Depository Trust & Clearing Corp.
The New York-based clearinghouse, which processes U.S. stock trades, cited eight key concerns to the financial industry such as new regulations, high frequency trading, the risk to counterparties defaulting, collateral requirements and natural disasters, according to a report, “Beyond the Horizon.”
A Bloomberg article reports that the DTCC study’s findings echo a July study co-authored by the World Federation of Exchanges and the International Organization of Securities Commissions – the two groups said a “significant” number of exchanges fought off sabotage via the Internet over the last year. About 53 percent of exchanges surveyed had been hit by a cyber-attack in the last year, the report says.
American venues are most likely to suffer an attack, with 67 percent saying they had to fight them off, the WFE and IOSCO study showed. Eighty-nine percent say it represents a systemic risk, Bloomberg reports.