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Earlier this month the Financial Conduct Authority (FCA) tripled its cyber security budget for 2017-2018. Both financial markets and the real economy rely heavily on information exchanges, with an intensified risk of critical information infrastructure breakdown or an online massive failure.
By Laurent Clavel, Head of Macroeconomic Research at AXA Investment Managers
Whether from accidental bugs or failures or because of an intentional attack, a severe disruption of financial information flows through undersea cables could potentially stop market activities. Two figures give a measure of the risk: 1) the SWIFT network uses undersea fibre-optic communications cables to transmit financial data to more than 8,300 member financial institutions...
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