2017

Dec
31

Introduction of system of audit of transactions on U.S. stock exchanges was postponed for fear of hacker attacks

SEC: The Commission on securities and stock exchanges of the USA voted for the repeal of the ban on advertising by hedge funds

Introduction of system of audit of transactions, designed to help the authorities to monitor suspicious transactions, postponed again, writes Reuters. The U.S. Congress doubts, that the system is protected from hacker attacks.

In 2010 year there was the Flash Crash — flash crash in the value of shares on the US stock market, the entire market has lost about a trillion dollars for a little more 30 minutes. In order to avoid repetition of this situation, system was developed to audit transactions (CAT). It is designed to facilitate and accelerate the search of cheaters.



The Commission on securities and stock exchanges of the USA for 8 years planned to start working CAT, constantly shifting deadlines. This time, data on stock exchange transactions had to start to do to CAT 15 Nov, but running again had to be postponed.

President of Chicago Board options exchange Cboe Chris Concannon (Chris Concannon) said at a hearing in Congress, the main reason for the delay in, that guide CAT hasn't hired the head of information security. A consortium of stock exchanges and regulatory authority of the financial services industry (FINRA), which instructed the creation of a system, not yet decided on the candidate for this position.

Recently, the result hacking computer systems credit Bureau Equifax, leakage of personal data 143 million people. Hackers gained access to databases with names, dates of birth, addresses and social security numbers. Have 209 thousands of people stole Bank cards. Hacking found only 29 July, although access to the database, the hackers got in mid-may. A similar situation was the company Yahoo. In 2013 year attackers get access for all user accounts is more 3 billion people. Chris not sure, that CAT in storing this information securely implemented from the point of view of information security.

The expert said the financial services Committee, in creating the CAT can't afford mistakes and the work has to be done perfectly. For this you need to postpone the implementation of the system audit transactions for an indefinite period, while not addressed cybersecurity issues.

CAT will store information about execution, change or cancellation of each stock and option trading transactions, made in the USA — about 58 billion records per day. Also in the system will be kept and personal information, for example, social security numbers of participants.

Executive Director and head of investment of pension savings Healthy Markets Association Tyler Gallas (Tyler Gellasch) believes, what the problem is, the system cannot determine, who sells it right now. Without this information, cybersecurity is at a low level, and the system will be less useful.

Top-Manager believes, that legislation, which is based on the financial services Committee, will undoubtedly delay the launch of audit system for a few years due to legal complexities and red tape. If the course is not going to kill the project completely.

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