The UK's finance regulator is urging all institutions under its remit to better prepare for IT meltdowns like that of CrowdStrike in July. The Financi

Financial institutions told to get their house in order before the next CrowdStrike strikes

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2024-11-02 12:00:10

The UK's finance regulator is urging all institutions under its remit to better prepare for IT meltdowns like that of CrowdStrike in July.

The Financial Conduct Authority (FCA) said issues at unregulated third parties were the leading cause of operational disruption within Blighty's financial institutions between 2022 and 2023.

Many major organizations were affected to varying degrees by CrowdStrike's software cockup over the summer, including some of the world's leading banks and trading houses.

JPMorgan Chase's trade execution systems were reportedly affected, some Bloomberg terminals were rendered inaccessible, the London Stock Exchange was hit, and ION Group, UBS, CMC Markets, and others also all reported issues.

"These outages emphasize firms' increasing dependence on unregulated third parties to deliver important business services," the FCA said in a statement. "This highlights the importance of firms continuing to become operationally resilient in line with our rules.

"We encourage all firms, regardless of how they were affected by the CrowdStrike incident, to consider these lessons, to improve their ability to respond to and recover from future disruptions."

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