The World Federation of Exchanges (WFE) has launched the exchange industry's first cyber-security committee, to help fend off the threat from hackers targetting mission critical market infrastructures.
The working group will bring together representation from a number of exchanges and clearinghouses across the globe, to collaborate on best practices in global security. It will be chaired by Mark Graff, chief information security officer, Nasdaq OMX and vice-chaired by Jerry Perullo, VP, information security, IntercontinentalExchange (ICE).
Ravi Narain, chairman of the Working Committee, says: "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 practices."
In addition to developing cyber-security best practices, the Committee will also seek to establish a shared communication framework among participants and liaise with policy-makers, regulators and government on cyber-threats.
The formation of the Committee comes just months after the WFE and Iosco released the results of a study of members which revealed that just over half of the world's securities markets have fought off intrusions by cyber-attackers over the past year.
As the number of high-profile and critical hits increases, the report warned that underestimation of the severity of the risk may lay open securities markets to a black swan event.
Says Graff. "We are tasked with a significant goal: to build universal best practices and partner with third-parties to combat systemic cyber-abuse 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."