Cybersecurity
A Watchdog Says Hedge-Fund Secrets Kept by the CFTC Are Vulnerable to Hacking
- Watchdog says antiquated systems make for ‘tempting target’
- Derivatives regulator urged to overhaul its trading database
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Confidential market information collected from hedge funds and brokers by the main U.S. derivatives regulator is vulnerable to hacking because of the agency’s outdated computer systems, according to an internal watchdog.
The Commodity Futures Trading Commission needs to correct “numerous weaknesses” in the way it manages and stores data, the inspector general’s office said in an audit report released late last week. The review also said the CFTC needs to rebuild or replace a key, but antiquated, database of confidential trading positions that it uses to police futures and options markets.