Publication date: 10 May 2016
A strong, open and resilient technological ecosystem is essential to the health and protection of financial markets. Increased reliance on and use of technology creates benefits, but also engender inherent risks. Those risks, both to technological infrastructure and financial stability, require responses from regulators and government agencies, and we applaud governments for paying closer attention to this critically important issue.
It is also important, however, that countries and jurisdictions tackling risks do not create rules that inadvertently force global businesses to fragment their technology systems, impeding competition and innovation, thereby harming investors. This fragmentation would not only impede the flow of global capital and its contribution to economic growth, but also exacerbate the very risks regulators are trying to mitigate.
Countries everywhere are grappling with these new and intrinsically global challenges. We therefore believe that a conversation between policymakers, industry and other interest groups needs to take place at an international level to ensure that policy remains effective and that the global economy benefits from the full promise technology stands to offer. In the interests of helping begin that conversation, the Securities Industry and Financial Markets Association (SIFMA), Asia Securities Industry and Financial Markets Association (ASIFMA), European Banking Association (EBA) and International Swaps and Derivatives Association (ISDA), have outlined a set of principles we believe are essential for the formation of effective policy on cybersecurity, data and technology.