Terry Duffy is the Executive Chairman and President of CME Group, which is hosting its annual Global Financial Leadership Conference next week in Naples, Fla. Mr. Duffy chatted with SmartBrief and shared more background on the GFLC.

The Global Financial Leadership Conference is now in its 8th year … How has the event evolved?

The GFLC has evolved into one of the foremost events for leaders in our industry. This annual, two-day conference brings together some of the greatest minds in global economics and politics to discuss significant issues impacting our world. Over the years, we’ve featured former U.S. presidents, foreign heads of state, global business luminaries, and much, much more.

Virtually every speaker at GFLC comes from a field dealing with increased volatility. From geopolitics and financial markets to natural resources and media disruption, what are some of the keys to effectively handling volatility?

Volatility is a component of every market and has been since they were invented. (read more…)

Financial institutions need to focus on resilience and sharing information about cybersecurity, which should be treated seriously as a matter of national defense in the US, said experts and regulators at the Securities Industry and Financial Markets Association’s Annual Meeting in Washington, D.C., on Tuesday.

“We need national defense priority on cybersecurity,” just as with nuclear defense, because no company has the budget to battle sovereign nations launching cyberattacks, said Ronald Kruszewski, chairman and CEO of Stifel Financial.

Jim Rosenthal, chief operating officer of Morgan Stanley, suggested the Reserve Officers’ Training Corps, or ROTC, could train students toward careers in cybersecurity to help make up for the US’ talent gap in that area.

Treasury Secretary Jack Lew and Securities and Exchange Commission Chair Mary Jo White reiterated the need for companies to share breach-related information among one another and with the government. Doing so will help other firms detect wider patterns and defend against the kinds of breaches that have occurred to other organizations, Lew said. (read more…)

Collaboration between the financial services industry and government entities has increased in response to rapidly evolving cybersecurity threats, but both sides agree there is room for improvement. Experts at the SmartBrief Cybersecurity Forum in New York City on Tuesday identified increased information sharing and the enactment of legislation already making the rounds on Capitol Hill as two ways to enhance the security of today’s financial markets.

Policy Enhancements

Karl Schimmeck, managing director of financial services operations for the Securities Industry and Financial Markets Association, said cybersecurity initiatives undertaken by the Obama Administration earlier this year have spurred greater engagement from a host of government agencies. Schimmeck also cited the NIST Framework unveiled in 2014 as example of the government helping industry devise best practices that can be put to use by all firms – large and small.

Chris Feeney, president of the Financial Services Roundtable’s BITS technology policy division, said government could help by harmonizing state laws within the U.S. (read more…)

“Without financial services, nothing else happens.” So says Broadridge President and CEO Rich Daly. SmartBrief caught up with Daly on the sidelines of the 2015 Milken Institute Global Conference to discuss how financial services firms can turn technology challenges and operational burdens into competitive advantages.

What do you think about the potential of financial utilities?

I have heard this idea for a long time. The elephant in the room is that nobody in the history of the world has ever taken a single-entity platform and successfully converted it to a multi-entity platform. I am not saying it is impossible, but no one has ever done it. It is like taking a studio apartment and saying you want to convert it into a sports arena. I guess you could do it, but you are starting with something that is entirely different to begin with.

The answer is trying to take the infrastructure we already have and using technology to re-engineer it so it is truly less costly for everyone. (read more…)

With cybersecurity front-and-center in the board rooms and executive suites of virtually every major corporation, it stands to reason that some of the thought leaders at the 2015 Milken Institute Global Conference would have a few things to say on the topic.

Companies are starting to understand the business community has reached a “new normal” when it comes to cybersecurity, according to Brunswick Group CEO Susan Gilchrist. CEOs are becoming more engaged and are understanding they need to invest.

Ray Rothrock, chairman and CEO of cyber defense firm RedSeal, said a great deal of spending has transitioned from prevention to incident response and recovery. However, Rothrock cautioned that the solution is more complex than just boosting cybersecurity budgets. Rothrock said JPMorgan Chase is a prime example: The firm spends hundreds of millions of dollars per year on cybersecurity and it still got hit.

There are many relatively inexpensive best practices that firms can deploy to improve their cybersecurity. (read more…)