As I started writing this blog, yet another major hack has occurred; data for about four million US Federal employees (over 1% of the overall US population) was stolen--in what is certainly a criminal act, and potentially an act of "cyberspionage", if not an act of 21st century warfare. It is interesting to consider whether we are actually in the beginning of a new cold war, as state actors attack, both commercial and government organizations to harass. Is the purpose criminal, to utilize major data sets for criminal gain, or to learn more about one’s enemy? To bring the focus to the financial services vertical, it is clear that ever increasing vigilance is required to defend the banking perimeter, but what needs to be done on the capital market side? The threats of theft of money, theft of confidential information, and the loss of reputational are shared by every industry, and capital market participants are no different. Moreover, there are additional concerns that are specific to the capital markets, which include:
- Control loss at an execution venue
- Spoofing attacks that create false liquidity or deter liquidity
- Wealth destroying false news
- Central depositories & clearing houses data attacks
