CFTC Sues and Settles with AMP Global Clearing over Cybersecurity Failures

The Commodity Futures Trading Commission (CFTC) today issued an Order filing and simultaneously settling charges against AMP Global Clearing LLC, a registered FCM, for its failure to diligently supervise the implementation of critical provisions in AMP’s information systems security program (ISSP). As a result of this failure, a significant amount of AMP’s customers’ records and information were left unprotected for nearly ten months. In April 2017, as a result of this failure, a third party unaffiliated with AMP (Third Party) accessed AMP’s information technology network and copied approximately 97,000 files, which included customers’ records and information, including personally identifiable information. These white hat hackers then contacted federal authorities about securing the copied information, and the cybersecurity failure.

Specifically, the Order finds that AMP failed to supervise its IT Provider’s implementation of ISSP provisions it was delegated with implementing under AMP’s supervision, including identifying and performing risk assessments of access routes into AMP’s network, performing quarterly network risk assessments to identify vulnerabilities, maintaining strict firewall rules, and detecting unauthorized activity on the network. This failure left a significant amount of AMP’s customers’ records and information vulnerable to cyber-exploitation for nearly ten months until the Third Party accessed AMP’s network.

Braden Perry is the leader of the Commodities, Futures, and Derivatives practice group and also a former Senior Trial Attorney with the CFTC, representing clients on a wide range of commodities and derivatives regulatory matters, including privacy, cybersecurity, and breach management. Clients also benefit from Kennyhertz Perry’s experience in related areas of law, such as litigation, banking, securities, insurance, and its regular practice before the Commodity Futures Trading Commission. Leaders in the financial industry choose Kennyhertz Perry because the firm’s lawyers tailor their advice to the unique issues presented by each matter they handle.