HONG KONG, May 8 (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. (Reporting by Michelle Price; Editing by Jacqueline Wong)