(Reuters) — Hong Kong's securities regulator on Monday published a proposal to tighten information security rules after a series of embarrassing hacks at the city's brokers.
The draft rules by the Hong Kong Securities and Futures Commission (SFC) will include requirements for two-step authentication for account log-in and for brokers to notify clients when a transaction had been made, the proposal said.
In addition, the SFC proposes to expand the scope of existing cyber security requirements that currently apply to the trading of on-exchange shares to cover internet trading of a range of securities, including unit trusts, mutual funds.
The SFC said last month it planned to introduce the new rules after a series of digital pump-and-dump schemes targeting brokerages — a little-known type of computer-generated fraud that surged in the Chinese territory last year.
The consultation will be open for two months.
Home Depot Inc.’s board will closely monitor the company’s cyber security measures under a proposed settlement reached with shareholders in litigation filed in response to the retailer’s 2014 data breach.