SIFMA Executive Vice President Snook Delivers Remarks Regarding Cybersecurity

At SIFMA's Tech 2014 Conference, SIFMA Executive Vice President Randy Snook spoke about how to maximize the potential of technology while managing the inherent risk.

According to Mr. Snook, while a tremendous amount of innovation has made the U.S. equity markets more efficient and liquid, it has also established a complex structure that requires review and maintenance. Mr. Snook stated that the Consolidated Audit Trail, when built, will provide regulators with the trade and order data that is needed to surveil the markets. Additionally, Mr. Snook noted, SIFMA has announced its support for a shortened settlement cycle, from T3 to T2, for U.S. equities, corporate bonds and municipal bonds, which he said could lead to a meaningful reduction in operational risk.

Mr. Snook also voiced SIFMA's disapproval of FINRA's recently proposed concept, CARDs, which calls for the development of a new system to collect sensitive information about retail customer brokerage accounts. According to Mr. Snook, CARDs would be a "massive and invasive regulatory intrusion with serious privacy and security implications for the general public with added technology costs and operational burdens for the financial industry."

Additionally, Mr. Snook mentioned that, while technology in the social media space makes it easier than ever for firms to maintain a direct line of communication to clients, employees and the general public, there is also the potential for misuse. In response to this risk, Mr. Snook stated, SIFMA will continue to hold simulations, exercises and drills, such as its Quantum Dawn 2 simulation, to help the industry prepare for technological threats and to protect the system and its customers.

See: Mr. Snook's Speech.