Nasdaq Stockholm, Clearing Fined by Swedish Regulator for Lax Security

There presently exists a wide disparity in the levels of security and Risk Management Risk Management One of the most common terms utilized by brokers, risk management refers to the practice of identifying potential risks in advance. Most commonly, this also involves the analysis of risk and the undertaking of precautionary steps to both mitigate and prevent for such risk.Such efforts are essential for brokers and venues in the finance industry, given the potential for fallout in the face of unforeseen events or crises. Given a more tightly regulated environment across nearly every asset class, One of the most common terms utilized by brokers, risk management refers to the practice of identifying potential risks in advance. Most commonly, this also involves the analysis of risk and the undertaking of precautionary steps to both mitigate and prevent for such risk.Such efforts are essential for brokers and venues in the finance industry, given the potential for fallout in the face of unforeseen events or crises. Given a more tightly regulated environment across nearly every asset class, Read this Term deployed at institutional venues amidst a rising specter of cyber crime. Unfortunately, not all groups take this threat seriously, as Nasdaq Stockholm and its derivatives Clearing Clearing Clearing is a general term that simply means many different things depending on the subject and related industry. Most commonly, this refers to the reciprocal exchange between banks of checks and drafts, and the settlement of the differences, or the total of claims settled at a clearinghouse. In finance and banking, the word clearing has different meanings depending on the more specific business model. Moving checks from the bank where they were deposited to the bank on which they were drawn. Th Clearing is a general term that simply means many different things depending on the subject and related industry. Most commonly, this refers to the reciprocal exchange between banks of checks and drafts, and the settlement of the differences, or the total of claims settled at a clearinghouse. In finance and banking, the word clearing has different meanings depending on the more specific business model. Moving checks from the bank where they were deposited to the bank on which they were drawn. Th Read this Term operation found itself facing a SEK 55 million ($6.0 million) fine for lax security measures.

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Swedish regulatory authorities are in the midst of a crackdown to help shore up cyber security protocols in the country. Like many other regulators worldwide, an uptick in cyber crime has prompted action from groups in a bid to buttress their own infrastructures against hacking.

However, an investigation conducted by Finansinspektionen (FI), a Swedish public authority that helps police its domestic financial services industry, found that Nasdaq Stockholm and its derivatives clearing operation were unacceptably lax in their oversight of information security services provided by US parent company Nasdaq.

The regulator levied a $6 million fine after the risk management protocols in place at both operations failed to clarify the adequacy of the services provided nor effectively take local conditions into consideration. Nasdaq Stockholm was forced to pay a $3.3 million penalty (SEK 30 million), while Nasdaq Clearing was slapped with a $2.7 million (SEK 25 million) fine.

According to a recent regulatory statement from FI regarding its findings and consequent action: "FI finds that neither Nasdaq Clearing nor Nasdaq Stockholm have acquired the information required to assess the quality of the delivered services and place sufficient requirements on the service provider."

"FI has also identified that the companies’ continuity guidelines and emergency plans were prepared without considering a scenario that manages the risk of cyber attacks. Both companies have demonstrated deficiencies of such a degree that FI has made the assessment that there are grounds on which to intervene against them,” the watchdog group added.