Dark Reading is part of the Informa Tech Division of Informa PLC

This site is operated by a business or businesses owned by Informa PLC and all copyright resides with them.Informa PLC's registered office is 5 Howick Place, London SW1P 1WG. Registered in England and Wales. Number 8860726.


12:51 PM
Dark Reading
Dark Reading
Products and Releases

Legacy Infrastructure Will Fail To Meet Regulatory Compliance Objectives, Say Over 70% Of Banking And Insurance Professionals

Interxion research is focused on the impact of anticipated regulation of the financial services industry

AMSTERDAM - 14 March 2012 - INTERXION HOLDING NV (NYSE: INXN), a leading European provider of carrier-neutral colocation data centre services, today announced the results of an independent study and whitepaper by financial industry think-tank, JWG. The research is focused on the impact of anticipated regulation of the financial services industry on the ICT infrastructure requirements of banking and insurance firms across Europe.

The research - based on interviews with select industry practitioners, a pan-European industry survey of IT decision makers within banking and insurance firms and a review of more than 4,000 pages of regulation stipulated by the G20 in the aftermath of the financial crisis. These include the implementation of new capital requirements, as defined by Basel III and Solvency II, and reforms such as MiFID II and the European Market Infrastructure Regulation (EMIR) that will significantly affect firms’ systems, controls, reporting and record keeping ability. These regulations require major upgrades starting in 2012 and rippling across industry sectors for the rest of the decade.

The study found that a massive 71% of respondents did not believe that legacy system upgrades required to meet compliance objectives would be complete by the required implementation date in 2015, while an overwhelming 90% stated that penalties for non-compliance by the end of this year will run into the tens of millions of dollars.

With 40% of respondents saying they lacked confidence in the ability of their overall ICT infrastructure to comply with upcoming regulations, 30% said they would need third-party data centres to fulfil compliance and security requirements, whilst also being able to reduce operational risk capital buffers.

PJ Di Giammarino, CEO, JWG said: “Many financial institutions are trying to run services on disparate systems whose complexity and inflexibility make it difficult to respond to regulatory demands. But non-compliance could lead to significant fines or even cost firms their licence to practice.”

He added: “The accountability for compliance will most likely lie with IT and operations, but there is no evidence that they are engaging with the regulators to set the right standards. There is a clear disconnect between infrastructure practitioners and compliance experts which needs to be resolved fast if firms want to maintain their competitive advantage as well as comply.”

Kevin Dean, Chief Marketing Officer, Interxion commented: “The impact of the G20 regulatory reform on financial institutions’ ICT infrastructure requirements will be significant and it is clear that firms need to invest in the ‘correct’ technology. Building internal data centres is no longer an option for many firms due to capital restraints emanating from Basel III and Solvency II and the prevalence of legacy systems. Therefore banks and insurers are increasingly re-thinking their data centre strategies and considering the externalisation of their facilities.”

He added: “This research from JWG highlights the role suppliers can play in better supporting industry requirements and in helping banks and insurance firms navigate the vast terrain of legislation. Interxion is committed to understanding the impact of regulation on our customers in detail and to offering the appropriate solutions.”

Interxion data centres provide fully compliant professional environments for mission-critical business applications, offering the stringent levels of security, reliability and performance required by the financial services industry. They also allow financial institutions to avoid investment in non-core activities without relinquishing control over ICT systems and processes.

The full research findings will be presented by JWG and discussed with a panel of industry experts at a seminar in London on 22 March and a webinar on 29 March. Banking and insurance industry professionals can register for these events free-of-charge.

About Interxion

Interxion is a leading provider of carrier-neutral colocation data centre services in Europe, serving over 1,200 customers through 28 data centres in 11 European countries. Interxion’s uniformly designed, energy-efficient data centres offer customers extensive security and uptime for their mission-critical applications. With connectivity provided by more than 400 carriers and ISPs and 18 European Internet exchanges across its footprint, Interxion has created content and connectivity hubs that foster growing customer communities of interest. For more information please visit www.interxion.com.

About JWG

JWG works with regulators, financial institutions and technology firms as the independent analysts to help determine how the right regulations can be implemented in the right way. JWG are unique. Their independence permits collaboration with regulatory and industry bodies, financial institutions and technology firms without serving the interests of any constituent over another. For more information please visit www.jwg-it.eu.

Comment  | 
Print  | 
More Insights
Newest First  |  Oldest First  |  Threaded View
Former CISA Director Chris Krebs Discusses Risk Management & Threat Intel
Kelly Sheridan, Staff Editor, Dark Reading,  2/23/2021
Security + Fraud Protection: Your One-Two Punch Against Cyberattacks
Joshua Goldfarb, Director of Product Management at F5,  2/23/2021
Cybercrime Groups More Prolific, Focus on Healthcare in 2020
Robert Lemos, Contributing Writer,  2/22/2021
Register for Dark Reading Newsletters
White Papers
Cartoon Contest
Write a Caption, Win an Amazon Gift Card! Click Here
Latest Comment: This comment is waiting for review by our moderators.
Current Issue
2021 Top Enterprise IT Trends
We've identified the key trends that are poised to impact the IT landscape in 2021. Find out why they're important and how they will affect you today!
Flash Poll
Building the SOC of the Future
Building the SOC of the Future
Digital transformation, cloud-focused attacks, and a worldwide pandemic. The past year has changed the way business works and the way security teams operate. There is no going back.
Twitter Feed
Dark Reading - Bug Report
Bug Report
Enterprise Vulnerabilities
From DHS/US-CERT's National Vulnerability Database
PUBLISHED: 2021-02-27
SerComm AG Combo VD625 AGSOT_2.1.0 devices allow CRLF injection (for HTTP header injection) in the download function via the Content-Disposition header.
PUBLISHED: 2021-02-27
An issue was discovered in through SaltStack Salt before 3002.5. salt.modules.cmdmod can log credentials to the info or error log level.
PUBLISHED: 2021-02-27
In SaltStack Salt before 3002.5, eauth tokens can be used once after expiration. (They might be used to run command against the salt master or minions.)
PUBLISHED: 2021-02-27
An issue was discovered in SaltStack Salt before 3002.5. Sending crafted web requests to the Salt API can result in salt.utils.thin.gen_thin() command injection because of different handling of single versus double quotes. This is related to salt/utils/thin.py.
PUBLISHED: 2021-02-27
i-doit before 1.16.0 is affected by Stored Cross-Site Scripting (XSS) issues that could allow remote authenticated attackers to inject arbitrary web script or HTML via C__MONITORING__CONFIG__TITLE, SM2__C__MONITORING__CONFIG__TITLE, C__MONITORING__CONFIG__PATH, SM2__C__MONITORING__CONFIG__PATH, C__M...