ICBC U.S. Broker-Dealer Hit by Extensive Cyber Hack

Ransomware Attack Raises Concerns Over Resilience of $26 Trillion Treasury Market

• The cyber hack of Industrial and Commercial Bank of China's (ICBC) U.S. broker-dealer was so extensive that it temporarily left the brokerage owing BNY Mellon $9 billion.
• The ransomware attack, claimed by cybercrime gang Lockbit, pushed the firm owned by China’s largest bank close to the brink and raised concerns about the resilience of the $26 trillion Treasury market.
• ICBC's New York-based unit, ICBC Financial Services, received a cash injection from its Chinese parent to help pay back BNY and manually processed trades with the custody bank's help.
• ICBC is working with cybersecurity firm MoxFive to set up secure systems that would allow it to resume normal business on Wall Street.
• The hack is likely to become a key topic of conversation at a major Treasury market conference on Nov. 16 and could boost a Securities and Exchange Commission's push to have more Treasury trades go through central clearing.

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