March 1993
Computer Audit Update
While most companies were back up and running by Monday morning, the operating hours of New York's five big commodity exchanges were cut by more than half. Exchange officials said that they cut short the trading sessions in gold, oil, coffee and cotton, among other commodities, because of concerns about the potential overheating of the mainframe used by all five exchanges. The computer is housed on the ninth floor of the Four World Trade Center, which was without air conditioning following the blast that rocked it neighbour, Two World Trade Center.
Mike Moeller
T a u r u s finally a b a n d o n e d The Board of the London Stock Exchange has stopped all work on the development and testing of its Taurus service. Following an approach by Sir Andrew Hugh Smith, chairman of the Exchange, the governor of the Bank of England has appointed a small task force to consider the best way forward for securities settlement in the UK. In the light of the Board's decision, Peter Rawlins, chief executive of the Exchange, has decided to stand down. The decision to cancel the project was reached following a review, by Coopers & Lybrand and senior management of the Exchange, of the status and objectives of the project in the light of the first industry-wide testing stage. Serious problems were revealed that would have entailed an additional 15 months work prior to the resumption of further testing. In the view of the Board, the significantly lengthened timescales and the cost necessary to achieve a reliable service made continuation of the project unjustifiable. The Board emphasised that the existing Talisman settlement service would in no way be affected by the decision. Speaking of the decision, Sir Andrew Hugh Smith commented: "Markets and the needs of investors and intermediaries have changed since Taurus was originally designed. We now focus
©1993 Elsevier Science Publishers Ltd
closely on the differing needs of professional and retail investors - - the so-called segmented approach. The abandonment of the project enables all concerned to replan accordingly... In trying to be all things to all men it became over-complex."
H a c k e r a c q u i t t e d on 'addiction' defence Paul Bedworth, a 19-year old member of the UK hacking group the 8 Legged Groove Machine (8LGM), has been acquitted of three charges under the 1990 Computer Misuse Act. Bedworth used a BBC PC and random dialling programs to hack into telephone accounts at the Financial Times and the European Organization for the Research and Treatment of Cancer. Through the use of these accounts and by running up phone bills in excess of £30 000, Bedworth then proceeded to hack into hundreds of systems internationally. Bedworth was charged of: conspiracy to obtain telecommunications services dishonestly, conspiracy to cause unauthorized modification in computer material and conspiracy to secure unauthorized access to computer material. Bedworth's defence was based upon the argument that the hacking arose because of his 'addiction' to computers. He was therefore suffering from an illness and could be said to have been unable to form the criminal intent necessary if charges of conspiracy were to be upheld. Giving evidence for the defence, Professor James Griffith Edwards, an expert on addictive behaviour, said that Bedworth had a "nonchemical dependence" on using computers. That because of Bedworth's obsession with computers it was impossible to judge what his intentions had been. Bedworth's barrister, Alistair Kelman, commented: "This law should never be invoked against the most vulnerable members of society. Mr Bedworth had no option but to follow the dictates of his illness."
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