KATHMANDU, Sept 21: The Nepal Stock Exchange (NEPSE) has clarified that stock trading on Monday had to be shut down due to a ransomware attack on the infrastructure of Data Hub Pvt Ltd, the company that hosts servers for the Trade Management Systems (TMS) of 72 brokerage firms.
Expressing concern over the technical glitches seen in the trading platforms, the frontline regulator suspended transactions in the secondary market throughout the day. According to the vendor company, the ransomware attack was detected in its system at 5:30 am on Sunday. “We have secured and isolated the backup system due to this issue,” reads the statement released by Data Hub.
The ransomware attack targeted the infrastructure hosting the TMS for these 72 brokerage companies. Data Hub reported that the ransomware was suspected to have affected or propagated to other connected networks and systems. For this reason, the potentially affected networks and systems have been kept isolated as a precautionary measure.
Glitches in online trading system hampers share trading
The company said it is conducting an investigation and forensic analysis to determine the full impact of the incident and is implementing necessary security and recovery measures.
NEPSE Spokesperson Murahari Parajuli confirmed that the exchange halted Monday's trading to safeguard investors from possible misconduct that could occur on the trading platform. “As problems surfaced in Data Hub’s infrastructure, we have isolated the system from possible hacker attacks,” he said.
NEPSE issued a notice stating that Monday's trading had been suspended in accordance with Rule 21(1) of the Securities Listing and Trading Regulations, 2018. Under this rule, NEPSE has the authority to suspend or halt regular share trading in the event of special circumstances, technical issues, or systemic risks.
Parajuli said NEPSE decided to close trading on Monday after concerned stockbrokers requested that transactions be halted for the day, citing possible threats to NEPSE’s trading system as well.
The technical glitches that crop up in the NEPSE system from time to time have raised concerns among around 8 million investors involved in stock trading. According to an investor, at a time when the stock market has grown to a size of more than Rs 4.553 trillion, government authorities must show serious concern for the smooth operation of the trading platform to ensure investors’ safety.
