Implementation of a transaction audit system, designed to help authorities track suspicious transactions, postponed again, writes Reuters. U.S. Congress doubts, that the system is sufficiently protected from hacker attacks.
IN 2010 year there was a Flash Crash - an instant fall in the value of shares in the US stock market, in total, the market lost about a trillion dollars for a little more 30 minutes. To avoid repeating this situation, a transaction audit system was developed (CAT). It is designed to facilitate and speed up the search for dishonest players..
US Securities and Exchange Commission during 8 years planning to start CAT, constantly shifting deadlines. This time, data on exchange transactions should have begun to flow into CAT 15 november, but the launch had to be postponed again.
President of the Chicago Board Options Exchange Cboe Chris Concannon (Chris Concannon) said at a congressional hearing, that the main reason for the delay is, that CAT has not yet hired a Chief Information Security Officer. Exchange Market Consortium and Financial Services Regulatory Service (FINRA), tasked with creating a system, have not decided on a candidate for this position.
Recently, as a result hacking компьютерных систем бюро кредитных историй Equifax, there was a leak of personal data 143 millions of people. Hackers got access to databases with names, dates of birth, addresses and social security numbers. IN 209 thousands of people have stolen bank card numbers. Hacking was discovered only 29 July, although the hackers got access to the database in mid-May. Yahoo had a similar situation.. IN 2013 году злоумышленники got access к аккаунтам всех пользователей — это более 3 billions of people. Chris is not sure about, that in CAT storage of this information is implemented reliably from the point of view of information security.
The expert told the Financial Services Committee, that no mistakes can be made in the creation of a CAT and the work must be done perfectly. To do this, it is necessary to postpone the implementation of the transaction audit system for an indefinite period., until cybersecurity issues are resolved.
CAT will store performance information, change or cancellation of each exchange and option trade transaction, made in the USA is about 58 billion records per day. Also, the system will store personal information., for example, members' social security numbers.
Tyler Gellash, Executive Director and Head of Pension Investments at Healthy Markets Association (Tyler Gellasch) considers, what the problem is, that the system cannot determine, who exactly is trading right now. Without such information, cybersecurity will be at a low level., and the system itself will be less useful.
Top manager thinks, that 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, it completely kills the project.
