MLex: tech outsourcing draws scrutiny from IOSCO

Technology outsourcing by companies in the securities market is drawing scrutiny from global standard-setters to ensure robust safeguards against hacking and other disruptions, a senior regulatory official has said.

Cybersecurity is among the top worries of the International Organization of Securities Commissions, or IOSCO, senior policy advisor Alp Eroglu told an industry conference yesterday in Athens. So the regulatory body is keeping watch on how exchanges and other market infrastructure work with tech consultants, he said.

In a panel discussion on risks facing market operators, Eroglu described the failure of a clearinghouse as another high-priority concern, with outsourcing also a “very important” issue.

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