Critical Infrastructure Security , Government security Think tank warns US markets face hidden infrastructure risks June 26, 2026 Share By SC Staff (Adobe Stock) A new report from the Institute for Critical Infrastructure Technology (ICIT) warned that U.S. financial markets rely on a small number of highly concentrated physical and digital infrastructure hubs , creating systemic risks that could ripple through the broader economy if disrupted. The report, " The Hidden Infrastructure Powering America's Markets ," argued that while investors interact with markets through digital trading platforms, the underlying systems that support trading, settlement and market operations are clustered in a handful of data centers in northern New Jersey, including facilities in Secaucus, Carteret and Mahwah. According to the authors, those sites serve as key connection points for exchanges, trading firms, financial market utilities and network providers. ICIT said the geographic concentration delivers efficiency and low-latency trading, but also creates shared dependencies. A disruption affecting power, connectivity or operations in the corridor could affect trading, price formation and market liquidity across U.S. markets, with potential global consequences. The report identified Financial Market Utilities (FMUs) as another major concentration point. Organizations such as the Depository Trust & Clearing Corporation (DTCC) and the Options Clearing Corporation (OCC) perform critical clearing, settlement and counterparty risk functions. ICIT warned that disruptions to those institutions could undermine settlement certainty, collateral flows, liquidity and confidence in the financial system. Beyond exchanges and clearinghouses, the report highlighted risks stemming from shared infrastructure providers , including data centers, cloud platforms, telecommunications carriers and software vendors. Because multiple financial institutions depend on the same providers and physical locations, a single failure could cascade across markets, the authors said. They also noted that emerging technologies such as artificial intelligence and quantum computing could increase the sophistication of attacks targeting critical infrastructure. To illustrate the potential impact of infrastructure failures, the report pointed to the Sept. 11, 2001, terrorist attacks, which forced U.S. markets to close for nearly a week after financial infrastructure was damaged. When trading resumed, the Dow Jones Industrial Average fell more than 7% in one day, contributing to an estimated $1.4 trillion loss in market value over several days. ICIT concluded that strengthening financial infrastructure resilience will require greater coordination among government agencies, infrastructure operators and the investment community, along with sustained investment, board-level oversight and ongoing resilience testing to reduce systemic risk. Download the ICIT report "The Hidden Infrastructure Powering America's Markets" here: https://www.icitech.org/post/the-hidden-infrastructure-powering-america-s-markets-concentration-interdependency-and-systemic-r SC Staff Related Critical Infrastructure Security How to stop treating OEM software like a security liability David Bellini June 26, 2026 Don’t wait until a breach forces the company to adapt. Critical Infrastructure Security ASIO establishes dedicated teams to counter nation-state cyber sabotage SC Staff June 25, 2026 As reported by The Register, Australia's Security and Intelligence Organisation (ASIO) has formed specialized units to combat cyber sabotage orchestrated by nation-states targeting the country's critical infrastructure, according to ASIO Director-General Mike Burgess. Critical Infrastructure Security Two men plead guilty in UK for cyberattacks on Transport for London SC Staff June 23, 2026 The guilty pleas were entered by Thalha Jubair, 20, and Owen Flowers, 18, who are identified as key members of the cybercrime group Scattered Spider. Related Events Cybercast From code to cloud: Stopping attacks in the software supply chain On-Demand Event Virtual Conference Securing the Backbone: Strategies to Counter Cyber Threats to Critical Infrastructure in the Public Sector On-Demand Event Get daily email updates SC Media's daily must-read of the most current and pressing daily news Business Email By clicking the Subscribe button below, you agree to SC Media Terms of Use and Privacy Policy . Subscribe You can skip this ad in 5 seconds