Tag: nyse
Outages At NYSE, United Airlines, WSJ.com Expose Digital Vulnerabilities

Outages At NYSE, United Airlines, WSJ.com Expose Digital Vulnerabilities

By Andrea Chang and Tracey Lien, Los Angeles Times (TNS)

The cyberoutages came one after another: one of the nation’s biggest airlines, its largest financial news publication and its main stock exchange.

Wednesday morning’s spate of technological foul-ups grounded United Airlines flights, sidelined the Wall Street Journal‘s website and halted trading for hours on the New York Stock Exchange. Their successive timing ignited widespread speculation about hacking attacks and conspiracy theories about who might be responsible.

Government and company officials said the causes were more mundane and technical, but the shutdowns nonetheless raise concerns about the vulnerability of vital organizations that can be easily crippled by malfunctions or cyberattacks.

As the world becomes more connected, such events expose serious risks for countries, companies and individuals who depend so heavily on fragile technology — often a mash-up of neglected old-fashioned processes and cutting-edge systems. Electricity grids, credit cards, social media, email, public transportation and GPS all have become indispensable to everyday modern life.

“These are incredibly complicated systems. There are lots and lots of failure modes that are not thoroughly understood,” said Jeff Schmidt, chief executive and founder of JAS Global Advisors, a security consulting firm. “Because the systems act so quickly, you have this really increased potential for cascading failures.”

On most days, the Internet and the myriad systems it powers can be counted on to work well enough. But security experts say problems are inevitable, whether due to hacking, human error, broken cables, buggy code or other unforeseen issues.

Technology will evolve and improve over time, but it will never be foolproof. What’s more important, experts say, is for organizations and individuals to better protect themselves against issues that are bound to crop up — an often neglected task.

Carl Wright, general manager of TrapX, a security-through-deception defense company, said much of the rapid deployment of new technology comes with little forethought about security.

“If we take a look historically at security budgets for most enterprises, most are about 10 percent of the whole IT spend of an organization. Sometimes, it’s as low as 6 percent,” he said. “Not a lot of the money an organization spends on tech to create capability for their business goes to securing it. What we need to see is a major shift.”

One problem: The best security systems can be costly. In other cases, the technology is still struggling to catch up to plug the holes.

But organizations can play defense. Business continuity plans and relationships with regulators and law enforcement can lead to faster response times when problems arise. Building in redundancies — using two Internet service providers, for instance — can serve as a backstop when one system crashes.

Training programs get employees up to speed on how to better handle failures. At the higher levels, nimble management teams can quickly identify an issue and respond to it — difficult in large corporations and heavily regulated businesses.

One strategy growing in popularity is for businesses to invite hackers to look for security vulnerabilities and reward them with so-called bug bounties.

Many organizations rely on third-party vendors to help them prepare for outages. A slew of security companies have cropped up, introducing new technology that replaces standard character-based passwords with images and even emojis.

Wednesday morning’s series of outages was an unusual occurrence, immediately prompting questions about a cyberattack.

Homeland Security Secretary Jeh Johnson said in a statement that “the malfunctions at United and the NYSE were not the result of any nefarious actor. Both organizations cited technical issues for their downtime, which totaled 3 { hours for the NYSE and about 1 { hours for United.

A spokeswoman for the Wall Street Journal said its website’s outage was still being investigated.

Cybersecurity and the massive dependence on technology have also concerned lawmakers. On Wednesday, three of the nation’s top federal law enforcement officials strongly urged Congress and Silicon Valley to allow government authorities immediate, instant access to encrypted cellphones and other Internet devices.

The coincidental timing of that pitch — on the same day that the outages occurred — might bolster officials’ case that more stringent measures are needed to protect American computers and national infrastructure from cyberattacks, despite objections from Silicon Valley.

On Tuesday, the nation’s top cryptographers criticized Washington demands for companies to alter their technology and allow law enforcement to secretly see and read what is being sent and received on cellphones and computers.

“Lawmakers,” the scientists warned, “should not risk the real economic, geopolitical and strategic benefits of an open and secure Internet for law enforcement gains that are at best minor and tactical.”

(Times staff writer Christine Mai-Duc contributed to this report.)

(c)2015 Los Angeles Times. Distributed by Tribune Content Agency, LLC.

Photo: A United Airlines employee, center on phone, works with passengers at the economy check-in area of O’Hare International Airport as flights were delayed due to a stoppage on Wednesday, July 8, 2015. United grounded all U.S. flights because of “automation issues.” Planes at O’Hare were not leaving the gates, and some passengers said they were unable to book flights. (Jose M. Osorio/Chicago Tribune/TNS)

White House Says No Indication Of Malice In NYSE Shutdown

White House Says No Indication Of Malice In NYSE Shutdown

“There is no indication that malicious actors were involved” in the glitch that shut down the New York Stock Exchange on Wednesday, according to White House press secretary Josh Earnest.

Earnest said that President Obama had been briefed, and that “effective communication” between private sector officials and public officials in charge of cybersecurity was taking place.

Although the current situation is not due to a cyberattack, Earnest asserted that the federal government’s “security posture is continually evolving to reflect the current threat environment.”

NYSE Suspends Trading Of All Securities Due To Technical Problems (Updated)

NYSE Suspends Trading Of All Securities Due To Technical Problems (Updated)

NEW YORK (Reuters) – The NYSE Group, which includes the New York Stock Exchange, has suspended trading in all securities due to technical difficulties, the unit of Intercontinental Exchange Inc said on Wednesday.

“We will be providing further updates as soon as we can, and are doing our utmost to produce a swift resolution, communicate thoroughly and transparently, and ensure a timely and orderly market reopen,” a spokeswoman for the exchange operator said in a statement.

The stocks continue to trade on other exchanges, such as those run by Nasdaq OMX Group and BATS Global Markets.

“It’s under control,” Mark Otto of market maker J. Streicher & Co in New York said on the NYSE floor. “We’re just waiting for word. There’s no sign of panic at all.”

The issues at NYSE came on the same day that computer problems led United Airlines to ground all its flights for about two hours.

The U.S. Department of Homeland Security said there were no signs” that the problems at NYSE and United Airlines stemmed from “malicious activity,” CNN reported.

The New York Stock Exchange accounted for about 13.4 percent of all equities volume last month and 12.5 percent Tuesday according to BATS Global Markets data.

Update: Trading on the New York Stock Exchange resumed late Wednesday afternoon, more than three hours after a technical outage halted activity on its own venues.

Investors had been able to continue trading in NYSE-listed stocks throughout the outage as orders were routed to other exchanges.

(Reporting by John McCrank; Additional reporting by Rodrigo Campos and Caroline Valetkevitch; Editing by Lisa Von Ahn)

Photo: Traders, governors, and members of the New York Stock Exchange discuss what is happening following a halt in trading on the floor of the exchange in New York, July 8, 2015. Reuters/Lucas Jackson

Alibaba To List On NYSE With Symbol ‘BABA’

Alibaba To List On NYSE With Symbol ‘BABA’

New York (AFP) — Alibaba will list its shares on the New York Stock Exchange under the trading symbol “BABA,” the Chinese e-commerce giant said Thursday.

In the latest update for its huge initial public offering, Alibaba still left out some key information for what is expected to be one of the biggest tech sector market debuts.

The filing with the Securities and Exchange Commission said the launch would be “soon as practicable,” without elaborating.

The initial filing indicated $1 billion will be raised in the public offering, but that amount is expected to be greatly boosted with later amendments.

Analysts say the listing is expected to raise somewhere around $15 billion, which would make it the technology industry’s largest IPO since Facebook’s in 2012.

The IPO is part of efforts by Alibaba to expand globally.

In choosing the NYSE, the company dealt a blow to the rival Nasdaq, which has been a preferred option for many tech companies but experienced a number of trading problems in the Facebook market debut.

Since then, key IPOs including from Twitter and Candy Crush maker King Digital have opted for the NYSE.

Last week, a U.S. government panel warned about risks from the complex legal structure of Alibaba and other Chinese Internet firms seeking to trade on the US market.

By using a series of shell companies that are based outside China, any legal contracts may be on shaky ground, the report said.

AFP Photo/ File

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