The World Federation of Exchanges (WFE) has unveiled what it says is the exchange industry's first international cyber-security committee, with SIX, CME and ten other stock exchanges contributing representatives to the new working group, which will be headed up by Mark Graff, Chief Information Security Officer (CISO) at Nasdaq OMX. The vice chair will be Jerry Perullo, who is vice president in charge of information security at the IntercontinentalExchange (ICE), which recently took over NYSE.
The role of the new WFE cyber-security committee is to identify and communicate global infosec best practice in regard to protecting market infrastructures against cyber-attacks and to protect the world’s critical capital markets. The working group brings together representatives from a number of exchanges and clearinghouses, such as the Depository Trust & Clearing Corporation (DTCC), to collaborate in the fight against hackers.
The fill list of present members, with more welcome to join, includes:
• Australian Securities Exchange
• Brazil’s BM&FBOVESPA
• CME Group
• The Depository Trust & Clearing Corporation (DTCC)
• IntercontinentalExchange (ICE)
• International Securities Exchange (ISE)
• Nasdaq OMX
• NYSE Euronext ICE
• Saudi Stock Exchange
• Singapore Exchange
• SIX Swiss Exchange
• Toronto Stock Exchange.
"The creation of this committee is a significant milestone for the global exchange community," said WFE’s Ravi Narain. "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 practice. We believe its formation will universally benefit the financial markets of the world."
The participants will share information about attack trends and useful policies, standards and technologies, while also seeking to engage with policy makers, regulators and government organisations about the cyber-threats facing the capital markets. Internal and external cyber-based defences will be explored collaboratively to try to reduce the amount of outages seen on trading venues this year, although these have generally been down to poor internal IT systems rather than the fault of malicious hackers.
The chairman of the new working group Nasdaq OMX CISO Graff, said that he is proud to be working with some of the brightest information security officers in the exchange industry. "We are tasked with a significant goal: to build universal best practices and partner with third-parties to combat systemic cyber-abuse,” he said, “with the aim being 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."
The World Federation of Exchanges is a trade association for the operators of regulated financial exchanges. With 62 members from around the globe, the WFE develops and promotes standards in markets. It also claims to support reform in the regulation of over-the-counter (OTC) derivatives markets via the US Dodd-Frank and European Market Infrastructure Regulation (EMIR), while fulfilling its primary mission to promote international cooperation and coordination among regulators.
By Neil Ainger