Federal Reserve Governor Jerome Powell and CFTC Chairman Christopher Giancarlo both cited cybersecurity as a fundamental risk point for the financial sector during a discussion at George Washington University Law School. Giancarlo said the SEC hack raises questions about how much proprietary data should be held by market regulators. Since the 2016 hack was disclosed in September, companies have raised concerns about giving over closely held data such as trading source code to government regulators. The concerns threaten to trip up implementation of the SEC's consolidated audit trail rule, which would keep track of every trade and order in U.S. stock and option markets, as well as efforts by the CFTC to expand regulatorsâ€" access to the computer code that drives automated trading strategies and bring more high-frequency traders under their oversight.
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