Bachus, Garrett Inquire About Integrity of National Equities, Options and Futures Exchanges

Cmte Financial Services (R)
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Bachus, Garrett Inquire About Integrity of National Equities, Options and Futures Exchanges

: Financial Services Committee Chairman Spencer Bachus and Capital Markets Subcommittee Chairman Scott Garrett sent a letter today to financial regulators, national equities, options and futures exchanges requesting information regarding the protocols in place to ensure the integrity of their trading systems.

The lawmakers made the request following reports that hackers repeatedly penetrated the computer network of the company that runs the Nasdaq Stock Exchange.

Bachus and Garrett stated in the letter: “The news that the NASDAQ Stock Market’s computer network has been repeatedly penetrated during the past year is troubling to say the least. At a time when investor confidence remains fragile, the hacking of a network that contains nonpublic inside, material information that could be used illegally to gain a trading advantage is especially disconcerting.”

“The world must have confidence in the technological security of our financial markets. To that end and without divulging specific network security protocols, we would appreciate hearing from you regarding what you are doing to ensure the ongoing integrity and security of exchange trading systems and clearinghouses in response to these reports,” said Bachus and Garrett.