18 December, AtoZForex.com, Lagos – In a bid to combat the growing threat of cyber security, the US Commodity Futures Trading Commission (Commission) has announced the approval of proposed Enhanced Rules on CFTC cybersecurity for Derivatives Clearing Organizations, Trading Platforms, and Swap Data Repositories.
Just like the National Futures Association’s stepped up efforts on cyber security, the newly proposed CFTC cybersecurity rules are intended for the amendments of existing regulations, for the testing and safeguards relating to automated systems used by critical infrastructures the Commission regulates. Before finally putting it in place, the proposal will be open for public comment. This will be over a period of two months following the publication in the Federal Register.
CFTC proposals
According to the CFTC, these two proposals will require that all derivatives clearing organizations, designated contract markets, swap execution facilities, and swap data repositories to conduct each of the five types of cybersecurity testing, as frequently as indicated by appropriate risk analysis. Additionally, minimum testing testing frequency requirements will be specified for all derivatives clearing organizations and swap data repositories. As well as from specified designated contract markets. It will also require them to have certain tests performed by independent contractors.
The five types of proposals identified for CFTC cybersecurity testing as essential to a sound system safeguards program, which are to be published in separate Federal Register Notices, includes:
- Vulnerability testing
- Penetration testing
- Controls testing
- Security incident response plan testing
- Enterprise technology risk assessments.
NFA cybersecurity efforts
The NFA is also seen to boost cyber security effort by improving its budget on Information Systems department. The additional the NFA Information Systems department is necessary, since this division supports cyber-security initiatives, rebuild large critical systems — such as NFA’s Online Registration System — and focus on new system developments in the swaps area. Even the Vice President of the NFA Information Systems department, Mr. Timothy McHenry clarified its importance in the present digital age: “Cyber threats are constantly evolving and increasing both in terms of complexity and intensity and serve as a daily reminder of the importance of effective cybersecurity.”
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