September 22, 2017

Nasdaq Breach Not Behind Us

nasdaq

The Nasdaq OMX experienced a breach in it's servers late last year. Image by bfishadow.

Hackers successfully breached systems of the company that runs the Nasdaq stock exchange late last year. News of the breach was just released over the weekend. Nasdaq OMX handles all of the trades for the exchange, along with auxiliary supporting systems.

According to Nasdaq OMX, the breach did not occur on the system that handles trades. Frank DeMaria, a spokesman for the company, said the exchange would operate as normal on Monday with no affect on trading.

The integrity of the Nasdaq trading platform was further confirmed by federal officials.

The Nasdaq has increased in popularity and number of trades over the past decade and a half. The exchange now accounts for roughly 19 percent of trades of stock in the United States. By comparison, the New York Stock Exchange, or NYSE, handles about 27 percent of trades.

According to analysts, the systems affected by the hackers exploits were ones used by the company in new services it is offering to corporations, and not tied to the Nasdaq’s trading platforms. These expanded services are an attempt by the Nasdaq OMX to capture more revenue than is seen through trading fees.

The company will face some serious PR challenges as it works overtime to quell public worry about the safety of the exchange and the trades performed on the platform.