What's the problem
The Commission discovered the break-in last year, but before September 2017, the representatives of the regulator were not aware that cyber criminals could access the information for insider trading. When this became known, the Chairman of the SEC, Jay Clayton, released a statement — but it contained no information about when it happened a break-in, were interested in whether the attacker information about a particular company, and what has caused the delay of recognition of the incident.
"Despite all efforts to protect our systems and information security risk management, in some cases, the cybercriminals managed to access and misuse our system," — said in zajavlenie Clayton.
Hackers attacked the system called EDGAR — it is used by investors to receive detailed financial reports that are required periodically to publish all companies whose shares are traded on the stock exchange. In the code system contained a vulnerability that allowed attackers to "access to nonpublic information," said in a statement, Clayton.
The system interface is EDGAR
As a result of breaking has not happened leakage of personal information, but data stolen "could be used to extract illegal profits through stock trading". The investigation continues.
Not for the first attack
The EDGAR system has become the target of burglars. So in 2015, hackers managed to publish in the system false information about the impending takeover of Avon Products, which has led to a serious increase of its shares. Earlier in 2014, several researchers have found that in some cases, placed in EDGAR information was available to some users for 30 seconds before the rest. This could give traders a serious advantage over other players — HFT-traders can make thousands of transactions in a moment, 30 seconds for them is an eternity.
News about the new hacking can jeopardize the Commission's efforts to gather more information about trading stocks on U.S. markets in a centralized database — the regulator aims to create a tool that will allow you to identify market manipulations. Some of the leading players on wall street such as the new York stock exchange (NYSE) has expressed its concern that such a database by default will become a target for hackers.
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