NYSE Euronext, owner of the largest U.S. equities exchange, is considering ways to improve its plan for dealing with disasters and said exchanges should consider mandatory testing after Hurricane Sandy caused the longest weather shutdown since 1888.
Bloomberg reports that the exchange industry should weigh whether regular testing of connectivity and backup facilities should be mandatory, according to comments NYSE Euronext e-mailed today in response to questions from a U.S. Senate committee concerning computerized trading venues.
Trading was halted for two days at the end of October when concerns about human safety and how well the New York Stock Exchange’s backup plan would work convinced executives that moving ahead was too risky. The Securities and Exchange Commission may consider whether exchanges’ emergency regimens need to be bolstered, a person familiar with the regulator’s thinking said in November. The person asked not to be named because the matter is private.
'There are several lessons to be learned from this event', NYSE Euronext said. 'At a minimum, businesses learned the importance of a well-prepared and tested business continuity plan. At NYSE Euronext, we are actively considering changes to our current disaster recovery model'.
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