19 November 2017
visit www.avoka.com

Hong Kong to tighten cyber-security rules in wake of multiple stock hacks

10 May 2017  |  9373 views  |  0 Hong Kong view

Hong Kong's Securities and Futures Commission is proposing new rules to strengthen cyber-security controls for stock trading following a spate of hacking incidents that resulted in hundreds of millions of dollars in losses.

The SFC is launching a two-month consultation on the proposed guidelines that set out 20 baseline cybersecurity requirements to mitigate against hacking risks.

The regulatory body says that for the 18 months ended 31 March 2017, 12 licensed corporations reported 27 cybersecurity incidents, most of which involved hackers gaining access to clients’ internet-based trading accounts with securities brokers, resulting in unauthorised trades totalling more than $110 million. Other incidents involved distributed denial-of-service attacks, accompanied by threats of extortion.

Key proposed requirements include two-factor authentication, for clients’ system login and prompt notification to clients of unusual activities in their internet trading accounts.

In addition, the SFC proposes to expand the scope of cybersecurity-related regulatory principles to cover the trading of securities which are not listed or traded on an exchange and to update the definition of 'internet-trading' to include mobile phones.

“Hacking of internet trading accounts is the most serious cybersecurity risk faced by internet brokers in Hong Kong,” says Ashley Alder, the SFC’s chief executive officer. “Brokers must strengthen their resilience to hacking and other cybersecurity risks by adopting robust preventive and detective controls.”

Comments: (0)

Comment on this story (membership required)

Finextra news in your inbox

For Finextra's free daily newsletter, breaking news flashes and weekly jobs board: sign up now

Related stories

CFTC approves rules to strengthen cyber resilience in financial markets

CFTC approves rules to strengthen cyber resilience in financial markets

09 September 2016  |  7784 views  |  0 comments | 8 tweets | 8 linkedin
SEC bills cyber threats as biggest risk to financial markets

SEC bills cyber threats as biggest risk to financial markets

18 May 2016  |  5743 views  |  0 comments | 6 tweets | 11 linkedin
Cyber risks pose the single biggest threat to modern financial markets - CFTC

Cyber risks pose the single biggest threat to modern financial markets - CFTC

04 December 2015  |  10518 views  |  0 comments | 24 tweets | 31 linkedin
Fear of cyber-attacks drives increased belief in FS sector 'high-impact event'

Fear of cyber-attacks drives increased belief in FS sector 'high-impact event'

01 December 2015  |  5029 views  |  0 comments | 13 tweets | 8 linkedin
Man jailed for Hong Kong exchange cyber-attack stunt

Man jailed for Hong Kong exchange cyber-attack stunt

12 November 2012  |  7192 views  |  0 comments | 5 tweets | 3 linkedin

Related company news

 

Related blogs

Create a blog about this story (membership required)
visit www.aciworldwide.comvisit https://www.niceactimize.comvisit www.vasco.com

Top topics

Most viewed Most shared
Ripple boss predicts central bank adoption of blockchainRipple boss predicts central bank adoption...
13540 views comments | 21 tweets | 21 linkedin
Singapore central bank open sources blockchain prototypesSingapore central bank open sources blockc...
11856 views comments | 15 tweets | 28 linkedin
Digital receipt startup Flux scores game-changing deal with BarclaysDigital receipt startup Flux scores game-c...
9956 views comments | 20 tweets | 36 linkedin
AmEx partners Ripple and Santander for blockchain-enabled cross-border paymentsAmEx partners Ripple and Santander for blo...
9516 views comments | 13 tweets | 39 linkedin
UK cryptocurrency exchange startup launches debit card for spending bitcoinUK cryptocurrency exchange startup launche...
8028 views comments | 26 tweets | 37 linkedin

Featured job

to £70K base, £105K ote, benefits
London, UK

Find your next job