The Securities Industry and Financial Markets Association, the Asia Securities Industry and Financial Markets Association, the European Banking Association and the International Swaps and Derivatives Association (the trade associations) published a position paper, on 10 May 2016, setting out principles in relation to international cyber-security, data and technology. The principles are intended to be a starting point for policy-makers and have been submitted to the Financial Stability Board and the International Organization of Securities Commissions for comment.
The paper highlights two crucial issues, namely that these are global issues which require global solutions and secondly, that technology is moving far faster than regulation. Some of the key principles recommended by the trade associations for policy-makers to adhere to are:
- Support of technological innovation and unrestricted choice of technologies.
- Encouragement of the development and use of financial technology ecosystems that are open, safe and interoperable.
- Recognition of the point that to transfer data globally is fundamental to supporting a global financial system.
- Recognition that there is no one-size-fits-all approach to cyber security, and regulations should be risk-based, threat informed and based on the size, scope, function and business model of the entity being regulated.
The trade associations urged the International Organization of Securities Commissions and Financial Stability Board to take these principles into account when engaging in policymaking, and standard-setting activities. The trade associations also expressed their intention to co-operate further with the two policy-makers and other interested parties.