The material on this site is for financial institutions, professional investors and their professional advisers. It is for information only. Please read our Terms & Conditions, Privacy Policy and Cookies before using this site.

All material subject to strictly enforced copyright laws. © 2021 Euromoney, a part of the Euromoney Institutional Investor PLC.
Foreign Exchange

The cyber security threat to FX algos

Although processes are in place to limit the impact of rogue algorithms, there are further steps electronic FX trading networks can take to protect themselves from cybercriminal activity.

Given the kudos a hacker would receive for disrupting the world’s largest financial market, it is perhaps surprising that more effort has not been made to target the systems that support the trillions of dollars of FX trades made every day.

FX broker FXCM remains the only high profile victim to date.

Tom Higgins, Gold-i

Gold-i CEO Tom Higgins says it would be difficult for someone to make a profit from attacking an electronic FX trading network, as all they could do is place trades with no guarantee they would make money from those trades.

However, he also accepts that a distributed denial of service attack – which would make the trading service unavailable – represents a considerable threat.

“The security behind trading networks at banks is extremely high,” he says. “Standard security mechanisms are very high quality, with strong levels of encryption and authentication, and ECNs and exchanges often use circuit breakers.

“However, as you get closer to the retail end of the markets, networks are less secure and there are very few controls in place.

You have reached premium content. Please log in to continue reading.

Read beyond the headlines with Euromoney

For over 50 years, our readers have looked to Euromoney to stay informed about the issues that matter in the international banking and financial markets. Find out more about our different levels of access below.

SUBSCRIBE ONLINE TODAY

Unlimited access to Euromoney.com and Asiamoney.com

Expert comment, long reads and in-depth analysis interviews with senior finance professionals

Access the results of our market-leading annual surveys across core financial services

Access the results of our annual awards, including the world-renowned Awards for Excellence

Your print copy of Euromoney magazine delivered monthly

£73.75 per month

Billed Annually

FREE 7 DAY TRIAL

Unlimited access to Euromoney.com and Asiamoney.com, including our top stories, long reads, expert analysis, and the results of our annual surveys and awards

Sign up to any of our newsletters, curated by our editors

LOGIN NOW

Already a user?

We use cookies to provide a personalized site experience.
By continuing to use & browse the site you agree to our Privacy Policy.
I agree