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infosec-news: [ISN] The Nasdaq Hacking Case Raises Big Red Flags

[ISN] The Nasdaq Hacking Case Raises Big Red Flags for Exchanges

From: InfoSec News <alerts_at_nospam>
Date: Mon Feb 07 2011 - 09:05:11 GMT

Daily Finance

Revelations over the past few days that hackers had penetrated certain
systems at the Nasdaq stock exchange are reverberating throughout the
financial world. Indeed, the case is shaking some bedrock assumptions of
a digitized, high-speed, globally connected stock market run essentially
by computers with minimal human interaction. Nasdaq officials say the
computer systems that actually execute buy and sell orders for the
Nasdaq OMX Group (NDAQ) were not compromised.

Instead, they say the hacking allegedly affected Nasdaq's Directors Desk
service, a subsidiary that offers Web-based tools to make it easier for
boards of directors to prepare for, participate in and follow up on
board meetings. Part of the service includes document-sharing tools for
things like preliminary drafts of earnings reports and other key data
and documents.

Directors Desk's roughly 10,000 clients include a Who's Who of top
publicly traded companies. The concern is that enterprising hackers
could have gleaned key details from board meetings if they gained full
access to the service, allowing them to possibly trade on nonpublic
material information. On the Directors Desk website Nasdaq says the
service offers "The highest level of security available to protect
confidential board communications."


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