The introduction of a transaction audit system on American exchanges was postponed due to fear of hacker attacks.
The introduction of a transaction audit system designed to help authorities track suspicious transactions is once again delayed, Reuters reports . The US Congress doubts that the system is sufficiently protected from hacker attacks.
In 2010, Flash Crash occurred - an instantaneous fall in the value of shares on the US stock market, the market lost about a trillion dollars in just over 30 minutes. In order to avoid a repetition of this situation, a transaction audit system (CAT) was developed. It is designed to facilitate and accelerate the search for dishonest players.
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The US Securities and Exchange Commission for 8 years planned to start work CAT, constantly shifting deadlines. This time, data on stock exchange transactions should have begun to arrive in the CAT on November 15, but the launch had to be postponed again.
Chris Concannon, president of Chicago-based stock options trading, Chris Concannon, said at a congressional hearing that the main reason for the delay was that CAT management had not yet hired an information security manager. The consortium of exchange platforms and the Financial Services Industry Regulatory Service (FINRA), which were instructed to create the system, have not decided on a candidate for this position.
Recently, as a result of hacking into the computer systems of the credit bureau Equifax, there was an leak of personal data of 143 million people. Hackers gained access to databases with names, dates of birth, addresses and social security numbers. 209 thousand people stole bank card numbers. Hacking was discovered only on July 29, although hackers got access to the database in mid-May. A similar situation was with the company Yahoo. In 2013, the attackers got access to the accounts of all users - more than 3 billion people. Chris is not sure that the storage of this information in CAT is secured from an information security point of view.
The expert told the Financial Services Committee that there should be no mistakes in creating the CAT and the work should be done perfectly. To do this, it is necessary to postpone the introduction of a transaction audit system for an indefinite period, until the problems of cybersecurity are resolved.
CAT will store information about the execution, modification, or cancellation of every exchange and option trade transaction made in the USA — about 58 billion entries per day. The system will also store personal information, for example, social security numbers of participants.
Tyler Gellasch, executive director and head of investment for the pension savings of the Healthy Markets Association, thinks the problem is that the system cannot determine who is trading right now. Without such information, cybersecurity will be at a low level, and the system itself will be less useful.
The top manager believes that the legislation on which the Financial Services Committee relies will undoubtedly delay the launch of the audit system for several years due to legal difficulties and red tape. Unless of course you do not kill the project completely.
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Source: https://habr.com/ru/post/345612/
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