Against the backdrop of a rising number of sophisticated cyber-attacks on the financial services sector, new guidance on how financial market infrastructures (FMIs) should protect themselves has been put out by a couple of global bodies.
Put together by the Committee on Payments and Market Infrastructures (CPMI) and the International Organization of Securities Commissions (Iosco), the report aims to offer best guidance for FMIs as they guard against the kind of cyber hit that could threaten the resilience of the financial system and broader economy.
Although the new report does not set out new standards beyond the CPMI-Iosco Principles for Financial Market Infrastructures, it offers extra detail on how FMIs should work to pre-empt cyber attacks, respond rapidly and effectively to them, and achieve faster and safer target recovery objectives if the attacks succeed.
The CPMI and Iosco are keen to ensure that there is consistency in how FMIs from different parts of the world approach the issue, stressing that if these infrastructures are not properly managed they can be a source of financial shocks, such as liquidity dislocations and credit losses, or a major channel through which these shocks are transmitted across markets.
"This is a landmark report for the financial industry. FMIs have come to the fore as financial sector hubs at a time when cyber resilience is a key priority for the financial industry. This is indeed a timely document, and FMIs should take action immediately to implement its recommendations," says Benoît Cœuré, chairman of the CPMI.