The World Federation of Exchanges publishes update on industry cyber efforts during the pandemic
London, 28 May 2020 – The World Federation of Exchanges (“WFE”), the global industry group for exchanges and CCPs, today published a report detailing measures the industry has taken to adapt and enhance existing cyber resilience tools during the pandemic, as exchanges and CCPs across the world successfully moved to operate remotely.
Cybersecurity is consistently in the top quartile of exchange and CCP focus, according to the WFE’s regular surveys of membership priorities. Across the membership, market infrastructures have dedicated time and resources to contingency planning and the associated cybersecurity requirements. These efforts are typically subject to regulatory and supervisory scrutiny, as well as in-house or external auditor stress testing.
Among the specific challenges that market infrastructures have had to address during the pandemic: mass remote-working arrangements, remote collaboration tools such as video and audio-conferencing applications and third-party risk have taken on greater importance and required creative measures to manage them.
WFE members have all benefited from the use of established practices operating under dedicated teams and, where appropriate, standing up additional resources to facilitate the continued delivery of a safe and efficient marketplace.
These measures, and the shared learning from them, were coordinated at industry level by the WFE’s Cyber Security Working Group (GLEX) which forms part of the front line in the industry’s defence against cyber-attacks.
Nandini Sukumar, Chief Executive Officer, the WFE said: “As markets and businesses have grown electronic, market infrastructures now devote a greater amount of resource 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.”
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About the World Federation of Exchanges (WFE):
Established in 1961, the WFE is the global industry association for exchanges and clearing houses. Headquartered in London, it represents over 250 market infrastructure providers, including standalone CCPs that are not part of exchange groups. Of our members, 35% are in Asia-Pacific, 45% in EMEA and 20% in the Americas. WFE’s 57 member CCPs collectively ensure that risk takers post some $800bn (equivalent) of resources to back their positions, in the form of initial margin and default fund requirements. WFE exchanges are home to nearly 53,000 listed companies, and the market capitalisation of these entities is over $93 trillion; around $88 trillion (EOB) in trading annually passes through WFE members (at end 2019).
The WFE is the definitive source for exchange-traded statistics, and publishes over 350 market data indicators. Its free statistics database stretches back more than 40 years, and provides information and insight into developments on global exchanges. The WFE works with standard-setters, policy makers, regulators and government organisations around the world to support and promote the development of fair, transparent, stable and efficient markets. The WFE shares regulatory authorities’ goals of ensuring the safety and soundness of the global financial system.
With extensive experience of developing and enforcing high standards of conduct, the WFE and its members support an orderly, secure, fair and transparent environment for investors; for companies that raise capital; and for all who deal with financial risk. We seek outcomes that maximise the common good, consumer confidence and economic growth. And we engage with policy makers and regulators in an open, collaborative way, reflecting the central, public role that exchanges and CCPs play in a globally integrated financial system.