Cybersecurity: The process of applying security measures to ensure confidentiality, integrity, and the availability of data. Cybersecurity attempts to assure the protection of assets, which includes data, desktops, servers, buildings, and most importantly, humans. The goal of cybersecurity is to protect the data both in transit and at rest - Wikipedia
Cybersecurity issues are prime topics at both FIA and MFA conferences this spring. FINRA is conducting an assessment of its member firm’s approaches to managing cybersecurity threats as they pertain to information technology. The CFTC has stated in their 2015 budget proposal, they do not have adequate resources to monitor the infrastructure of FCMs and other registrants, including exchanges, in order to review the adequacy of those cybersecurity operations.
A discussion of where we are now, and what is expected in 2015, is the focus of the second session during our April 30 meeting in New York City. Top lawyers and compliance firms, including Ruddy Law Firm, Compliance Supervisors and Turnkey Trading Partners, will hold a panel discussion and answer questions. Registration for the April 30 event is open now. Admission is free for industry participants.
On March 17, the CFTC agreed with the NIBA and other industry participants’ written requests when it issued a final rule removing the December 31, 2018 automatic termination of the phased-in compliance period for the Residual Interest Deadline for FCMs, and indicated further studies on the efficacy of the rule will be held. This issue was a main topic of our last visit with Commissioners, and of our various responses to requests by the CFTC. In a survey in the very near future, NIBA plans to ask its members how the now-in-effect November 2014 rule-change deadline has changed operations and customer/FCM relations.
Beginning with our May issue, we will add a feature to this newsletter focusing on FCM Risk Management operations. Each member FCM is asked to participate, answering questions put to them by the NIBA regarding their risk management team, methods and cybersecurity measures. We will post the information monthly as it is received.
Welcome to new members Advantage Futures and NADEX. FCM and exchange members, along with service provider members will attend our April 30 meeting in New York City. I hope to see you there.
Best regards, Melinda Melinda Schramm, Founder & Chairman