In the wake of this summer's cyberattack on JPMorgan, a Wall Street trade group representing hundreds of securities firms, banks and asset managers is speaking up on how the securities industry's cybersecurity should be managed. Detailed audits that are customized to individual firms' business models and an industry crisis response plan will be required to safeguard the industry, the Securities Industry Financial Markets Association said in an 11-page paper released last week.
On the heels of news that the cyberbreach at JPMorgan Chase & Co may have affected as many as 76 million customers, chairman and CEO Jamie Dimon announced last week that the firm will double its $250 million annual computer security budget over the next five years.
As more information circulates about the hackers that infiltrated JPMorgan, investigators are now saying they also attempted entry to at least a dozen other financial firms.
The Depository Trust Clearing Corporation is teaming with a security-focused industry trade group to launch a platform aimed at boosting the use of standards for sharing cybersecurity threats. The platform, launched with the Financial Services Information Sharing and Analysis Center will promote protocol-based cybersecurity automation, to encourage the quicker dissemination of threat data throughout the industry.
When proprietary equities trading firm Trillium Management LLC first began building a market monitoring tool several years ago, the goal was to spot illegal practices like the "layering" that several of its traders had been charged with engaging in back in 2010. But with the growth of high-frequency trading in U.S. equities markets, the firm found the tools could also provide a detailed look at how other market players can use sophisticated routing technology to jump ahead of orders.
The cyberattack against JPMorgan Chase & Co. that came to light last week is looking less likely to be part of a broader politically motivated attack against the banking industry. Initial reports...
The FBI and the Secret Service are investigating cyberattacks against several American financial institutions, including JPMorgan Chase & Co. Reports vary on many of the details, but the attacks were first discovered earlier this month and may have resulted in the theft of gigabytes of sensitive data.
The Securities and Exchange Commission held a round table March 26 to examine cyber security threats to the industry. The following month, the SEC's Office of Compliance Inspections and Examinations issued a risk alert, essentially warning the finance community about the importance of cybersecurity preparedness and outlining the agency's plans to assess the industry's preparedness.
Back in 2010, the Financial Industry Regulatory Authority informed Trillium Management LLC that it had uncovered trading patterns among some of the firm's traders that were consistent with "layering," or creating a false appearance of trading activity in order to drive a stock price. After agreeing to fines and sanctions for the employees involved in the deceptive practices, Trillium also agreed to implement a system for better control and monitoring of market manipulation.
The list of proposed changes to prevent manipulation of foreign exchange benchmarks received backing this week from the Global Financial Markets Association, an international trade association whose members represent 90 percent of the foreign exchange market. Industry participants had until Aug. 12 to comment on 15 proposed measures such as widening the fixing window and increasing the number of sources of transaction data during the fixing window.