CME GROUP EXECUTIVE CHAIRMAN AND PRESIDENT TERRY DUFFY TELLS FOX BUSINESS THAT CYBER INTRUSION “ISN’T JUST A CME PROBLEM THIS IS EVERYONE’S PROBLEM”
Chicago Mercantile Exchange Group (CME) Executive Chairman and President Terry Duffy spoke with FOX Business Network’s (FBN) Liz Claman about the cyber intrusion at the CME in July. Duffy said, “this isn’t just a CME problem this is everyone’s problem, whether you are an exchange, a bank or somebody else.” Duffy went on to say that, “operational risk is one thing that always concerns me” and that “we are going to continue to spend money on this to make sure our systems and clients are safe.” When asked about when he thinks the Federal Reserve will begin to taper Duffy said, it’s “hard to say” and that “I think with the nomination of Yellen as the next Fed Chairman it may be a little longer than what people thought.”
Excerpts from the interview are below.
On how safe exchanges are:
“Exchanges are safe, I mean it’s not the products that failed us, somebody tried to hack into our system and you know we have a panel going on right now with former Secretary Ridge, and they are talking about cyber security, so how appropriate right. This isn’t just a CME problem this is everyone’s problem, whether you are an exchange, a bank or somebody else. People are trying to hack into the systems.
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On what he is doing to keep the CME safe:
“You know, I’ve said to you and others that operational risk is one thing that always concerns me and this is why. And we are going to continue to spend money on this to make sure our systems and clients are safe.”
On the cyber intrusion at the CME:
“Obviously we were waiting for all the information to come out to the forefront before we put out the announcement because we didn’t want to put out an announcement at that time when we didn’t have all the information, so we were working with the authorities. Obviously somebody hacked into our system, it was our ClearPort system, so it wasn’t on our regular CME Globex system…some of the customers information was exposed, so we dealt quickly with the clients to make sure passwords and things like that were changed. There were no positions that were disrupted, there were no moneys that were lost anything of that nature, so again the final outcome will be determined by the authorities.”
On whether the CME is preparing for the Federal Reserve to begin to taper:
“I think we are already prepared.”
On when he expects tapering to begin:
“You know, that’s hard to say. I think with the nomination of Yellen as the next Fed Chairman it may be a little longer than what people thought.”
“You know we have a lot of people out on the ground in Asia a lot of our revenues are now coming out of different Asian countries today. We are diversified between Europe, Asia and the U.S. so we are doing quite well in that regard.”