Friday September 23 2016

News Source: Global Exchanges

Focus: General - Global Exchanges

Type: General




The World Federation of Exchanges (WFE) has published a set of principles around cyber resilience, intended to support and complement guidance already provided by global regulators.

The principles have been drafted in consultation with their members, following the publication of CPMI-IOSCO’s ‘Guidance on Cyber Resilience for Financial Market Infrastructures’ in June 2016. The CPMI-IOSCO’s guidance was designed to elaborate further on the main areas of its Principles for Financial Market Infrastructure (PFMIs) that are relevant for cyber security.

The WFE has further published its perspectives on the areas it considers important for national and/or regional market authorities to take into account when reflecting the local context.  WFE seeks to capture practical and operational considerations that members believe authorities should build into their thinking when designing, implementing and/or monitoring for compliance with rules, regulations or laws that affect the operational resilience of market infrastructure providers at the local level. 

A summary of the principles are as follows:

  1. In developing and implementing local FMI standards and initiatives, existing global cyber security standards should be used as an initial framework, to ensure consistency of approach and operational convention. Any FMI standards should be flexible enough to accommodate differences in regional and national legal and regulatory frameworks;
  2. Account should be taken of standards and approaches for non-FMI parts of the system, to ensure a consistently applied regulatory and operational approach;
  3. Cyber resilience frameworks should be balanced enough to enable continued technology innovation and development of markets and services while still remaining suitably robust to ensure markets are safe,
  4. FMIs should continue to be consulted to ensure that FMI standards are developed and implemented which are workable, acknowledge the specificities of the particular FMI model, and do not give rise to unintended consequences;
  5. Global principles should – insofar as national laws and regulations allow – be consistently implemented at national level without deviation or super-equivalence in order to support the objective of ensuring a level playing field with no weak links;
  6. Different markets have different models and different needs, and incidents are unpredictable in nature.  Further, technology moves quickly.  Standards and expectations should therefore have an element of flexibility so that FMIs can react quickly. 

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