Wall Street traders and brokers are in a state of panic following a ransomware attack on the Industrial and Commercial Bank of China, the country’s largest bank. The attack, which was first reported by the Financial Times, disrupted trading in the $25tn market for US Treasuries, revealing critical vulnerabilities in the world’s largest and most liquid Treasury market. Due to the compromised systems of the ICBC Financial Services, it was forced to send a USB stick containing trading data to BNY Mellon to assist in settling trades. This ransomware attack led to a significant sell-off in long-dated Treasuries, affecting market liquidity and contributing to a spike in Treasury yields.
BNY Mellon, the largest custodian bank in the world, has disconnected ICBC from its platform and does not plan to reconnect it until a third party certifies its safety. Experts in the industry have emphasized the need for rigorous scanning and scrutiny of ICBC’s systems before any reconnection is possible. US Treasury Secretary Janet Yellen has been in close communication with Chinese officials about the incident and has provided assistance to ICBC in resolving the issue. The Securities and Exchange Commission and the Securities Industry and Financial Markets Association have also been closely watching the situation in an effort to maintain fair and orderly markets in the aftermath of the attack. Ransomware attacks such as this have been increasing in frequency, posing a significant threat to global financial systems.
A ransomware attack on the biggest bank in China, Industrial and Commercial Bank of China (ICBC), has created chaos in the US Treasury market, leading to a sell-off of long-dated Treasuries. The attack forced ICBC to send a USB stick containing trade data to BNY Mellon to settle trades, disrupting market liquidity. BNY Mellon has severed connections with ICBC and will only reconnect after a third party certifies its safety. The US Treasury Secretary and various regulatory bodies have been closely monitoring the situation to maintain fair and orderly markets in the aftermath of the attack. Ransomware attacks have become increasingly frequent, posing a significant threat to global financial markets, and urging the need for increased cybersecurity measures.
