Nasdaq brings in the NSA to investigate network breach

US STOCK EXCHANGE OPERATOR Nasdaq has called in the US National Security Agency (NSA) to help investigate an attack on the firm's network in 2010.

Nasdaq publicly admitted that part of its network was compromised by an attack that took place in October 2010. At the time it announced an investigation into the attack with help from the Federal Bureau of Investigation (FBI), but now the stock exchange operator has brought in the NSA to find out just how deep the attack went into its network.

Previously Nasdaq had claimed that the security breach was limited to just a single system, Directors Desk, a service that is used by board members to share confidential information amongst each other. Nasdaq maintains that its investigation showed no data on that system was stolen.

Nasdaq's decision to bring in the NSA has got tongues wagging, with Joel Brenner, former head of US counterintelligence in the Bush and Obama administrations saying, "By bringing in the NSA, that means they think they're either dealing with a state-sponsored attack or it's an extraordinarily capable criminal organization."

However by asking the NSA to investigate, Nasdaq clearly wants to get to the bottom of this matter, and fast. One of Bloomberg's sources said that Nasdaq brought the NSA in not only to find out how far the attack reached into its network but to assess whether other systems were also compromised. Brenner, even with his considerable experience, said he was unable to confirm exactly what the NSA's role in the investigation will be.

Confidence in trading systems is paramount and Nasdaq must hope that investors will be reassured that the NSA is looking into matters. However according to one market research firm, the NSA investigation might hamper Nasdaq's ability to purchase or merge with other exchanges.

Stock exchanges have become targets for hackers as economies depend very heavily on their smooth running. The consequences of a digital stock exchange attack are not just the immediate downtime or even the loss of data but perhaps worse still, investors questioning the legitimacy of the exchange itself, a fear that can plague stock traders for a very long time. µ