Digitalisation and new technologies are deeply transforming the European financial system and players as well as related value chains (e.g. emerging models, concepts or technologies, among which high frequency trading algorithms, cloud computing, distributed ledger and artificial intelligence, increasing outsourcing and cooperation with fintechs, …). Consequently, new risks and threats appear, and the financial system is proving vulnerable to operational incidents and cyber-attacks.
Although the EU financial services regulations already encompass certain aspects regarding Information and Communication Technologies (ICT) and security and operational risk provisions, the Commission considers that these rules are fragmented in terms of scope, granularity and specificity.
More generally, the Commission is considering the need for a potential EU cross-sectoral digital operational resilience framework in the area of financial services.
The Commission is now working on a new Digital Finance Strategy for the EU which encompasses enhancing the digital operational resilience. However, the current Covid crisis stresses that operational resilience should go far beyond digital considerations.
Contributions to the policy debate
Extracted from the main Eurofi publications (Regulatory Updates, Views Magazines and Conference Summaries)