Dealing with multibillion-dollar losses and lessons for the financial world.
The Industrial and Commercial Bank of China brokerage firm in the United States was subjected to a large-scale cyber attack, as a result of which even corporate email stopped working, forcing employees to switch to using Google Mail.
As a result of the failure, the broker owed BNY Mellon $ 9 billion, an amount significantly higher than its net worth. This was a real test for the firm owned by China's largest bank and sent a signal to the entire financial sector, raising concerns about the sustainability of the $ 26 trillion U.S. Treasury bond market.
ICBC's New York division, ICBC Financial Services, received financial support from its Chinese parent bank to pay off its debt to BNY and manually processed transactions with the custodian bank. According to information published by Reuters, ICBC is working with MoxFive, a company specializing in technology consulting and systems recovery, to restore its operations and resume full-fledged activities on Wall Street by the beginning of the next business week, that is, by Monday.
The cyberattack, claimed by Lockbit, a group of cybercriminals, comes amid growing concerns about the reliability of the government bond market, which is key to global finance.
The incident is likely to bring a new element to the regulatory landscape, focusing on cybersecurity-related threats. In addition, hacking can encourage the initiative of the Securities and Exchange Commission (SEC) to conduct more transactions with treasury bonds through the central clearing mechanism, thereby increasing the transparency and security of such transactions.
ICBC Financial Services is one of the largest players on Wall Street. As of June 30, the company had approximately $ 24.5 billion in assets and $ 480.7 million in net capital. The Company primarily provides settlement and financing services for fixed income securities, such as repo transactions.
The Industrial and Commercial Bank of China brokerage firm in the United States was subjected to a large-scale cyber attack, as a result of which even corporate email stopped working, forcing employees to switch to using Google Mail.
As a result of the failure, the broker owed BNY Mellon $ 9 billion, an amount significantly higher than its net worth. This was a real test for the firm owned by China's largest bank and sent a signal to the entire financial sector, raising concerns about the sustainability of the $ 26 trillion U.S. Treasury bond market.
ICBC's New York division, ICBC Financial Services, received financial support from its Chinese parent bank to pay off its debt to BNY and manually processed transactions with the custodian bank. According to information published by Reuters, ICBC is working with MoxFive, a company specializing in technology consulting and systems recovery, to restore its operations and resume full-fledged activities on Wall Street by the beginning of the next business week, that is, by Monday.
The cyberattack, claimed by Lockbit, a group of cybercriminals, comes amid growing concerns about the reliability of the government bond market, which is key to global finance.
The incident is likely to bring a new element to the regulatory landscape, focusing on cybersecurity-related threats. In addition, hacking can encourage the initiative of the Securities and Exchange Commission (SEC) to conduct more transactions with treasury bonds through the central clearing mechanism, thereby increasing the transparency and security of such transactions.
ICBC Financial Services is one of the largest players on Wall Street. As of June 30, the company had approximately $ 24.5 billion in assets and $ 480.7 million in net capital. The Company primarily provides settlement and financing services for fixed income securities, such as repo transactions.
