MiFID Compliance Spotlights Security Risks

Lora Bentley

Just like the mention of Sarbanes-Oxley elicits groans from IT and financial departments here in the U.S., mention of the European Union's Markets in Financial Instruments Directive (MiFID) causes headaches for business executives in Europe. But if they're not careful, they may be in for more than headaches, warns a Continuity Central piece published today.

The MiFID implementation deadline is November 1, the story says, and very few firms are on track to meet it. Other companies are in such a rush to get ready, they are overlooking the existing security risks that MiFID compliance will reveal or the new ones that the complicated implementation requirements will create. If the companies aren't prepared to address the risks, they could face legal action and/or damage to their reputation.

Keep in mind:

  • Companies should evaluate their risks as well as determine what technology they already have that will address those risks. It may be a matter of repurposing what's there rather than spending money on more technology. The key, according to Continuity Central, is "getting everything to work together."
  • New risks that MiFID presents result from so-called "soft factors," namely human behavior and attitudes. Policy and identity management, the story says, will be important.
  • The faster companies can detect breaches or behavior that is improper, the better off they will be.

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