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A ransomware attack on the Industrial and Commercial Bank of China has disrupted the US Treasury market, according to market participants.
The Securities Industry and Financial Markets Association told members on Thursday that ICBC, China’s largest bank, had been hit by ransomware software, which paralyses computer systems unless a payment is made, according to several people familiar with the discussions.
The attack prevented ICBC from settling Treasury trades on behalf of other market participants, according to traders and banks.
“This is a large party on [the Fixed Income Clearing Corporation], so certainly of major concern,” said an executive at a large bank that clears US Treasuries. “And potentially impacting liquidity of US Treasuries.”
ICBC was starting to restore services as of Thursday afternoon, according to some of the people briefed on the incident.
ICBC did not immediately respond to a request for comment.
This is a developing story