The next major shock to the global financial system will come as a result of a cyber-attack, according to Greg Medcraft, chairman of regulator the International Organization of Securities Commissions (IOSCO). Medcraft told the FT on Sunday that the financial markets were at risk because of the “uneven” response to online threats around the world. “The issue of cyber resilience is a bit of a sleeper issue, and one that we have to be proactive [about] in terms of making sure the risk management approach is robust,” he said in an interview with the paper. “Cybercrime has a huge potential impact on markets.”
Medcraft claimed that the best approach would be to build on the work being done in the US, which is apparently developing risk management standards which firms in the industry could better use to spot and block cyber-attacks. The SEC has already stated it plans to assess the ability to deflect threats of 50+ broker-dealers and investment advisors. The IOSCO published a report last July with the World Federation of Exchanges which warned that the number of high profile and critical “hits” is increasing.
İstanbul Menkul Kıymetler Borsası (İMKB) has become a member of the Intermarket Surveillance Group (ISG).
Founded in 1980’s with the participation of securities exchanges and capital markets regulators, ISG membership is open to all exchanges, in consideration of criteria such as market surveillance capacity, right to information arrangements, and freedom of sharing information with other exchanges.
Once again, the world’s equity markets are witnessing a period of dramatic change. Driven by advances in technology, changes in regulatory and competition policy, and the evolution of exchanges from mutual to publicly traded, for-profit entities, we are seeing the simultaneous consolidation of exchange markets and the concurrent proliferation of alternative trading venues. A spectrum of market operators, traders and investors has raised concerns about these developments and their implications for transparency and market fragmentation.
The business of financial intermediation – bringing capital to new endeavours, securing a well-regulated set of investment choices for savers, and enabling risks to be laid off or assumed – has been one of the world’s great growth industries. Regulated securities and futures’ exchanges have stood at the apex of the burgeoning business of financial intermediation. Were we not so used to it, we would be startled that a single type of business could be so prominent that its street address would serve as short-hand for the entire economy, and an index of its prices a key barometer of economic outlook. Wall Street, Threadneedle Street, Hang Sen, Sensex, CAC40: these and other such names have become accepted barometers for economic wellbeing or otherwise.
Much has been said of the need for greater cross-market cooperation between regulators in light of recent events. Whilst this is not a new issue, it has been given greater focus since the financial crisis that led to a number of governments around the world providing financial support to key institutions. Furthermore with debate raging in both the US and Europe over the extent to which markets
Trade reporting and market transparency in the U.S. fixed income OTC market will expand substantially this year as trade reporting encompasses entire new classes of debt. Two initiatives by the Financial Industry Regulatory Authority (FINRA) would more than double the percentage of the U.S. debt market subject to FINRA data collection.