SEC chair eyes tougher cyber rules to protect investors against hackers
Securities and Exchange Commission chairman Gary Gensler is eyeing tougher cybersecurity rules to protect investors against financial loss and theft of personal data by hackers, he said in a speech Monday.
The agency's top official is considering more stringent requirements for a diverse set of firms underpinning the country's financial infrastructure, including publicly traded companies, financial advisors, brokerage houses, trading systems, and firms that custody client assets, among others.
The economic costs of cyberattacks extend into the billions and perhaps even trillions of dollars, Gensler said. The state and non-state hackers perpetuating the crimes often try to steal data, intellectual property or money; lower confidence in the financial system; and disrupt economies, he said.
«All this puts our financial accounts, savings, and private information at risk,» Gensler said Monday at Northwestern Pritzker School of Law's Annual Securities Regulation Institute.
«The financial sector remains a very real target of cyberattacks,» he added. «What's more, it's become increasingly embedded within society's critical infrastructure.»
At a meeting on Wednesday, SEC commissioners will consider whether to propose new cyber standards for Treasury trading platforms, Gensler said.
Specifically, the agency would bring the platforms under the umbrella of an existing rule — Regulation Systems Compliance and Integrity — which currently covers entities like stock exchanges and clearinghouses. The measure ensures firms have sound technology programs, business continuity plans, testing protocols and data backups, Gensler said.
The bureau chair has also asked staff to recommend reforms in a few other domains.
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