17 November 2017
visit www.avoka.com

UK clearing houses to be subject to formal cybersecurity reporting

25 August 2017  |  13803 views  |  0 Bank of england

Clearing houses in the UK will have to complete regular cybersecurity reports due to new legislation likely to be introduced in May 2018.

The legal update will put the UK's regulation of cyber security in financial market infrastructures much more in line with current EU directives around critical infrastructure, including the Network and Information Security (NIS) Directive.

The EU's Directive allows each member state to define what is classed as an 'essential service' and therefore covered by the legislation. 

Earlier this month the UK government stated that firms operating in banking and financial market infrastructure would be exempted from the 'essential service' operators, despite the Directive stating that such firms fall within its scope. 

The latest report, published by legal online news site Out-law.com, suggests that the UK plans to codify cybersecurity reporting for clearing houses in separate legislation to the UK's proposed new NIS laws.

The government said that "provisions at least equivalent to those specified in the Directive will already exist by the time the Directive comes into force" in the context of cybersecurity obligations and notification duties in the banking and financial market infrastructure sectors.

It said that firms in those sectors "must continue to adhere to requirements and standards as set by the Bank of England and/or the Financial Conduct Authority".

The Bank of England has taken a number of steps to underline the significance of cybersecurity for market participants and infrastructure operators, including payment networks, central securities depositories and clearing houses. Its last annual report  described cybersecurity as "a supervisory priority".

And the Bank's Financial Stability Report, issued in June, detailed its vulnerability testing of the market's infrastructure operators and participants, including ther identification of certain weaknesses in terms of cyber risks and the need to step up its cybersecurity efforts.

"In some cases, controls on the integrity of systems and confidentiality of data needed to be strengthened," the Bank said. "In others, the tests identified the need for further investment in capabilities to detect, mitigate and respond to attacks. And in general, the tests highlighted the importance of firms continuing to invest in their people, processes and technology in order to counter the risks of cyber attack."

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

SEC told to improve cyber attack defences

SEC told to improve cyber attack defences

28 July 2017  |  13905 views  |  0 comments | 10 tweets | 12 linkedin
Hong Kong to tighten cyber-security rules in wake of multiple stock hacks

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

10 May 2017  |  9369 views  |  0 comments | 14 tweets | 11 linkedin
Bank of England officials watch as cyber attack unfolds

Bank of England officials watch as cyber attack unfolds

03 November 2016  |  11357 views  |  1 comments | 15 tweets | 15 linkedin
New EU rules could cost UK firms £122bn in cybersecurity fines - PCI SSC

New EU rules could cost UK firms £122bn in cybersecurity fines - PCI SSC

17 October 2016  |  22440 views  |  4 comments | 32 tweets | 40 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  |  10515 views  |  0 comments | 24 tweets | 31 linkedin
UK banks covering up cybercrime losses - City of London Police

UK banks covering up cybercrime losses - City of London Police

14 April 2015  |  11826 views  |  14 comments | 27 tweets | 15 linkedin
Bank chiefs frightened by cyber risks - PwC

Bank chiefs frightened by cyber risks - PwC

17 February 2015  |  10414 views  |  2 comments | 11 tweets | 18 linkedin
BofE unveils cyber-security framework

BofE unveils cyber-security framework

10 June 2014  |  8147 views  |  0 comments | 6 tweets | 7 linkedin
Britain's banks told to draw up cyber-attack plans

Britain's banks told to draw up cyber-attack plans

02 October 2013  |  9978 views  |  0 comments | 11 tweets | 9 linkedin
LCH.Clearnet hit by major New Year's Eve IT failure

LCH.Clearnet hit by major New Year's Eve IT failure

26 March 2013  |  6770 views  |  0 comments | 1 tweets

Related company news

 

Related blogs

Create a blog about this story (membership required)
visit www.atos.netvisit https://www.niceactimize.comvisit www.fivedegrees.nl

Top topics

Most viewed Most shared
Singapore central bank open sources blockchain prototypesSingapore central bank open sources blockc...
11250 views comments | 15 tweets | 28 linkedin
Digital receipt startup Flux scores game-changing deal with BarclaysDigital receipt startup Flux scores game-c...
9513 views comments | 20 tweets | 36 linkedin
AmEx partners Ripple and Santander for blockchain-enabled cross-border paymentsAmEx partners Ripple and Santander for blo...
8288 views comments | 12 tweets | 35 linkedin
UK cryptocurrency exchange startup launches debit card for spending bitcoinUK cryptocurrency exchange startup launche...
7261 views comments | 26 tweets | 37 linkedin
Visa bids to bring contactless transit payments to the worldVisa bids to bring contactless transit pay...
7135 views comments | 16 tweets | 29 linkedin

Featured job

Competitive base, double ote, benefits
London, UK

Find your next job