Hedge Funds Warn SEC Cyber Lapses Risk Exposing Trading Secrets

The Securities and Exchange Commission and the Commodity Futures Trading Commission last week adopted rules expanding what private fund advisers must confidentially report—such as details on their crypto investments and credit strategies, including litigation funding. Regulators said the additional data will help them monitor market risks and bolster oversight of the private fund industry, which has grown to managing about $26 trillion in gross assets.

Industry groups voiced concerns about the government’s ability to safeguard data on the so-called Form PF, warning the detailed information could provide a roadmap to funds’ confidential proprietary investment strategies. The SEC in particular is an attractive target for hackers and has a fraught cyber record—as illustrated last month when hackers gained access to the agency’s official X account.

Source: Hedge Funds Warn SEC Cyber Lapses Risk Exposing Trading Secrets