Cybersecurity: Still at the ‘ Closing the Barn Door After the Horse Has Bolted’ Stage
1:21 PM, May 13, 2013 • By KEN JENSEN
And then there’s the new SEC trade-tracking computer system, which is purportedly designed to insulate the market from things like flash crashes caused by High Frequency Trading and hacking remains a system that report trades the next day instead of in real time. SEC Commissioner Mary Shapiro broke a 2-2 commission deadlock in favor of next-day reporting, ostensibly because the real-time version would be too costly. As Constantine von Hoffman has said, the market is now protected thus: “1) See horse in barn; 2) see horse leave barn; and 3) go close gate.”
So where are we on cybersecurity, and not only regarding the vulnerabilities of the market? At the point of being able to close the barn door when the horse has a mind to bolt.
Ken Jensen is associate director of the American Center for Democracy for its Economic Warfare Institute.
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