--- title: SIFMA Opposes Shifting CAT Data Breach Liability description: Shifting liability to industry is unfair because SROs have exclusive responsibility for maintenance. image: https://articles.marketsmedia.com/hubfs/Imported_Blog_Media/cybersecurity-finserv-May-12-2022-09-27-23-83-AM.png --- ![websites-group](https://articles.marketsmedia.com/hubfs/raw_assets/public/MarketsMedia_August2021/images/new-MMG-01.svg) [![](https://articles.marketsmedia.com/hubfs/raw_assets/public/MarketsMedia_August2021/images/dropdown-new-marketsmedia-logo.svg)](https://www.marketsmedia.com/) [![](https://articles.marketsmedia.com/hubfs/raw_assets/public/MarketsMedia_August2021/images/dropdown-menu-traders-redlogo.svg)](https://www.tradersmagazine.com/) [![](https://articles.marketsmedia.com/hubfs/raw_assets/public/MarketsMedia_August2021/images/dropdown-menu-bestexe-logo.svg)](https://www.bestexecution.net/) [![](https://articles.marketsmedia.com/hubfs/raw_assets/public/MarketsMedia_August2021/images/dropdown-menu-fidesk-logo.svg)](https://www.fixglobal.com/) [![](https://articles.marketsmedia.com/hubfs/raw_assets/public/MarketsMedia_August2021/images/dropdown-fixglobal-new-logo.svg)](https://www.fixglobal.com/) - [*Facebook*](https://www.facebook.com/MarketsMedia/) - [*Twitter*](https://twitter.com/marketsmedia) - [*Linkedin*](https://www.linkedin.com/company/markets-media-llc) - [Newsletter](https://articles.marketsmedia.com/sifma-opposes-shifting-cat-data-breach-liability#popup-newsletter) #### Want the latest news on securities markets -- FREE? 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The SROs would be shielded from liability not only for a breach of the CAT System by malicious third-party actors but even from the theft or other misuse of CAT Data by SRO employees.  This risk is particularly acute because data from the CAT System can be accessed by three thousand employees or contractors of 24 separate exchanges, FINRA and the SEC. SIFMA notes the shifting of liability is inconsistent with industry standards and is not necessary to ensure the financial stability of the CAT.  The extent of cyber-breach insurance coverage the CAT has obtained has also not been disclosed.  If the proposed liability limitation provisions were approved, every firm submitting data to the CAT would need to enhance its individual insurance coverage, at substantial cost, to address the same core risks of data breach or misuse within the CAT system, while the CAT LLC would be permitted to rely on insurance coverage that has not been shown to be sufficient. Finally, SIFMA believes the economic analysis used to develop the proposal is flawed in several respects.  The analysis focuses only on a breach by external actors and fails to address at all the risk of misuse of CAT data by personnel at CAT LLC and the SROs who have access to the data.  The report notes additional investment in CAT data security would not be economically justified despite the significant downside of a data breach and fails to recognize the firms have no choice but to bear the liability under the proposal and to insure themselves accordingly. Source: SIFMA [Share](https://www.facebook.com/share.php?u=https://articles.marketsmedia.com/sifma-opposes-shifting-cat-data-breach-liability) [Tweet](https://twitter.com/intent/tweet?text=US+ETFs+Have+Record+Net+Inflows&url=https://articles.marketsmedia.com/sifma-opposes-shifting-cat-data-breach-liability) [Share](https://www.linkedin.com/cws/share?url=https://articles.marketsmedia.com/sifma-opposes-shifting-cat-data-breach-liability) ![email](https://articles.marketsmedia.com/hubfs/Markets%20Media/email.svg) ### NEWSLETTER SIGN UP And receive exclusive articles on securities markets ### Related articles 1. 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