The Commodity Futures Trading Committee is currently holding a hearing on the market impact of the April 23rd Twitter attack.
The Twitter hack, which targeted an Associated Press account, sent a false tweet to 1.9 million followers that two bombs had exploded in the White House, injuring President Barack Obama. Markets reacted, losing $136 billion in value in a matter of minutes before quickly rebounding.
“This thing really did put the markets in a tumble,” says Bart Chilton, Commissioner of the CFTC. “As regulators I think we’ve always looked at social media as something that’s outside of our jurisdiction, but last week's hack attack shows we’re in a perilous position in regard to the confluence of social networks and trading so it can have a heavy and quick impact.”
Whether or not the CFTC will take an official position on the issue is up for debate. But Chilton gave The Daily Ticker a preview of some of the issues they might explore during the hearing.
“Social media is more than aRead More »from CFTC Commissioner on #HackCrash: Beware of a Rise in Twitter Arbitrage