10.30.23
Quantum Computing Could Transform Securities Industry, FINRA Says
by: Tracey Longo
Technology breakthroughs and an infusion of industry capital in quantum computing has increased the prospect that the brokerage industry will harness the technology for various tasks, said the Financial Industry Regulatory Authority (FINRA) in a new report. But even as quantum computing accelerates solutions for the industry, it also poses significant cybersecurity opportunities and risks, particularly in the area of encryption, stressed FINRA. The industry needs to be cautious because quantum computing “is uniquely positioned to offer a streamlined way to crack today’s standard encryption safeguards," FINRA said. The self-regulatory organization is seeking public comment from financial firms on the ways firms plans to use quantum computing, the ways in which FINRA should update or modify its rules to address quantum computing, how to prepare for a quantum future while maintaining investor protection and market integrity and how firms are “enhancing safeguards on their encrypted data, including those for quantum resistance.”
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