FIX Releases Cybersecurity Guidelines
The guidelines recommend authentication methods to use TLS protocols with FIX.
![cyber-security-2-web cyber-security-2-web](/sites/default/files/styles/landscape_750_463/public/import/IMG/779/289779/cyber-security-2-web.jpg.webp?h=d7f1125c&itok=WuIYyIsY)
FIX—a standard messaging language for most asset classes—set up a subgroup of the Cybersecurity Working Group to develop technical standards for using the Transport Layer Security (TLS) protocol. Discussions started in 2015 with the final guidelines opening up for public comment in July 2017. The group said FIXS is part of a larger project to address cybersecurity concerns expressed by the community.
Charles Kilkenny, chief executive officer of Actuare and chairman of the FIXS subgroup that worked on the guidelines, says the guidelines are a starting point for firms to add more security.
“FIXs is one of many controls which firms may want to consider when mitigating risk. It resulted in an opportunity within the FIX Cybersecurity Working Group to help make the use of TLS more straightforward for firms,” Kilkenny says. “The work of the FIX Cybersecurity Working Group is much broader though, covering everything from regulatory input to what are the common risks for firms to best of breed controls and learning from accepted information security frameworks. As a result, the collaboration and output of the group is much wider.”
The guidelines lay out how companies can use the TLS protocol, used to secure messages between servers, with FIX and maintain at least a minimum level of security.
“The standard first concentrates on possible methods to authenticate the parties connecting to one another,” according to the guidelines. “It then goes into the different aspects of each authentication method as well as the different protocol options and what is recommended.”
The guidelines recommend different authentication methods, protocol options, and cipher suites but do not prevent firms to use additional security policies.
Michael Cooper, chief technology officer for Radianz at BT Global Banking and Financial Markets and chairman of the working group, says cybersecurity posed a significant challenge for companies so it was important that the group allows for options in addressing it.
“There are several inherent challenges in addressing cybersecurity – not least being the increasingly broad attack surface we expose in an increasingly electronic and digital world, so where to focus, in what order and to what degree? Part of this is risk analysis – understanding not only what and where the risk is, but enabling sensitivity for an individual or organisation’s own assessment and appetite, understanding trade-offs and providing optionality – we are a community and there will be differences,” Cooper says. “That aspect is also one of the key advantages we have, as a community we have access to and communicate with a diverse group with a wide range of experience, skills and perspectives. But the perhaps the biggest challenge is the constancy and pervasiveness of the threat, we have designed our response to evolve as the threat evolves – this isn’t a threat that is binary and we will need to maintain currency as a consequence.”
The working group noted the guidelines can be updated based on industry feedback. FIX was unable to provide additional comment in time for publication.
Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.
To access these options, along with all other subscription benefits, please contact info@waterstechnology.com or view our subscription options here: http://subscriptions.waterstechnology.com/subscribe
You are currently unable to print this content. Please contact info@waterstechnology.com to find out more.
You are currently unable to copy this content. Please contact info@waterstechnology.com to find out more.
Copyright Infopro Digital Limited. All rights reserved.
As outlined in our terms and conditions, https://www.infopro-digital.com/terms-and-conditions/subscriptions/ (point 2.4), printing is limited to a single copy.
If you would like to purchase additional rights please email info@waterstechnology.com
Copyright Infopro Digital Limited. All rights reserved.
You may share this content using our article tools. As outlined in our terms and conditions, https://www.infopro-digital.com/terms-and-conditions/subscriptions/ (clause 2.4), an Authorised User may only make one copy of the materials for their own personal use. You must also comply with the restrictions in clause 2.5.
If you would like to purchase additional rights please email info@waterstechnology.com
More on Trading Tech
This Week: FCA, Plato/Turquoise, Franklin Templeton, and more
A summary of the latest financial technology news.
CME: CFTC OKs clearing move to Google Cloud
The CFTC has given the Chicago-based exchange approval to run its clearing and settlement infrastructure on the Google Cloud Platform, while the exchange and vendor have extended their partnership to last until at least 2037.
JP Morgan touts DLT, tokens for collateral management
Distributed-ledger technology could make moving non-cash collateral more efficient, said managing director Toks Oyebode during an Isda conference on Thursday.
Waters Wrap: The changing definition and perception of blockchain
Anthony says that questions of definition and perception are killing DLT projects in the capital markets—oh, and a lack of proven implementations.
BlackRock to integrate Aladdin and Preqin to create new private markets platform
CEO Larry Fink calls combining the two platforms “maybe the biggest opportunity in 10 years.”
Ace high or busted flush? Digital Asset’s mixed fortunes mirror DLT adversity
The vendor hoped to remodel post-trade using blockchain technology—and it still might—but its bumpy progress raises questions over the future of DLT in finance.
This Week: BlackRock/Preqin, Trading Technologies, FIA Tech and more
A summary of some of the past week’s financial technology news.
Adaptive’s Aeron goes live on Microsoft Azure Marketplace
The messaging software used for building bespoke trading platforms is now available on Microsoft’s marketplace, making it accessible through major cloud providers.