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Brexit’s a Growing Systemic Risk – But Cyber Risk is Worse: DTTC

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William Garza
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IMF research meanwhile suggests cyber attacks cost banks £79 billion annually

Brexit is rapidly emerging as a potential systemic risk to the global financial system, according to a new “risk barometer” [pdf] by the Depository Trust & Clearing Corporation (DTCC), a centralised clearinghouse for more than 50 global financial market exchanges and equity platforms.

But despite the UK’s exit from the European Union being the most significant advancer (+11 percent) and 3 overall risk in the annual survey, if there is one threat that keeps the global financial services sector up at night, it continues to be cyber risk; still the number one cause for industry concern.

IMF research [pdf] this summer suggested average annual potential losses from cyber-attacks may be close to nine percent of banks’ net income globally, or around $100 billion.

(The Fund acknowledges that major data gaps on cyber risk make the estimate challenging and anticipates GDPR to help with transparency).

The DTTC is the primary post-trade market infrastructure for the global financial services industry and sits at the center of securities trading activity, where it processes approximately 90 million financial transactions every day.

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