New CFTC cybersecurity standards are coming soon

October 7, 2015

On September 29, 2015, Commodity Futures Trading Commission (CFTC) Chairman Timothy Massad delivered a “State of the Derivatives Marketplace” speech before the 3rd Annual OTC Derivative Summit North America. The speech highlighted risks facing derivatives clearinghouses, including cybersecurity.

Chairman Massad said: “We’re stepping up efforts to protect against cyber threats – as well as technological and operational risk generally. That’s because clearinghouse risk does not come only from credit or market risk.”

To address cyber threats, the CFTC will add cybersecurity system safeguards, including information security programs, as part of the core principles and regulations applicable to clearinghouses, designated contract markets, swap execution facilities, swap data repositories (SDRs) and other entities. CFTC examinations will focus on an institution’s information security programs to determine whether it’s practicing good cyber hygiene and following written policies and procedures designed to mitigate cybersecurity risks.

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