The World Federation of Exchanges (“WFE”), the London headquartered firm representing global industry group for exchanges and Clearinghouses (CCPs) published a report detailing measures taken by the industry to adapt and enhance existing cyber resilience tools during the ongoing pandemic in its latest update. These measures are of paramount importance as exchanges and CCPs across the world have successfully moved to operate on a remote platform during the lockdown phase.
Cyber Security is one of the top factors in focus among a list of priorities exercised by exchange operators and clearing houses this quarter as per regular surveys conducted by WFE on its member organisations.
All members of WFE are now faced with a situation that required their market infrastructures to have dedicated time and resources for accommodating contingency planning and the associated cybersecurity requirements. Such measures are usually subject to stringent regulatory and supervisory scrutiny and strict in-house or external auditor stress testing.
As per the statement from the firm, some of the most challenging issued faced by their members when it came to market infrastructure during the ongoing pandemic scenario were the need to address mass remote working arrangements & remote collaboration tools. This would facilitate the primary mode of communication in the form of audio and video conferencing applications. Another thing which the members of WFE had to focus on was the risk from third parties, which have suddenly become of greater importance owing to the requirement of creative measures that were needed to manage and resolve the risks.
To this end, WFE’s Cyber Security Working Group (GLEX), which acts as part of the front line of defence for its members in the industry against cyberattacks, concocted several measures and co-ordinated with its members across the industry sharing the learnings from each member across the group. This allowed all WFE members to benefit from the use of established practices by operating under dedicated teams and allocating additional resources enabling a continued delivery of a safe and efficient marketplace.
Speaking on this topic, Nandini Sukumar – Chief Executive Officer of WFE said, “As markets and businesses have grown electronic, market infrastructures now devote a greater amount of resources and time to ensure cyber resilience than ever before. When the current world-wide pandemic situation, hopefully, lessens and countries and companies implement measured return to work procedures, WFE members recognise there will be a new normal operating environment for all in which such measures must continually be monitored, reviewed and implemented to protect against future threats”.
For more details on the report from WFE over how market infrastructure helped in delivering safe and efficient trading venues during this pandemic timeframe, please visit 🡪 this link.
The WFE is a global body established in 1961 to represent exchanges and clearing houses in the industry as a single entity in the form of an association. The firm is headquartered in London and is made of 250 members who serve as market infrastructure providers and standalone CCPs that are not part of exchange groups. A break up of its members to represent their concentration in the various market regions shows that 35% are in Asia-Pacific, 45% in EMEA, and 20% in the Americas market regions.
The WFE is the definitive source for exchange-traded statistics and publishes over 350 market data indicators with its free statistics database stretching back more than 40 years, providing information and insight into developments on global exchanges. The WFE works with standard-setters, policymakers, regulators, and government organisations around the world to support and promote the development of fair, transparent, stable, and efficient markets and shares regulatory authorities’ goals of ensuring the safety and soundness of the global financial system.