Letter to Financial Executives

Letter

Dear Sir or Madam:

The news that the NASDAQ Stock Market's computer network has been repeatedly penetrated during the past year is troubling to sat the least. At a time when investor confidence remains fragile, the hacking of a network that contains nonpublic inside, material information that could be used illegally to gain a trading advantage is especially disconcerting. While it is reassuring that NASDAQ's systems containing the trading platform and confidential customer information were not compromised, any breach of an exchange or clearinghouse's computer systems should be treated seriously given their important role in our nation's financial infrastructure.

The world must have confidence in the technological security of our financial markets. To that end and without divulging specific network security protocols, we would appreciate hearing from you regarding what you are doing to ensure the ongoing integrity and security of exchange trading systems and clearinghouses in response to these reports. We look forward to having your response by February 28, 2011.

Thank you for your consideration of this matter.

Sincerely,

Spencer Bachus
Chairman
Committee on Financial Services

Scott Garrett
Chairman
Subcommittee on Capital Markets and Government Sponsored Entities

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