NYSE prepares disaster backup plan: WSJ

Sat Mar 9, 2013 1:19pm EST

Traders work on the floor at the New York Stock Exchange just after the opening bell, March 8, 2013. REUTERS/Lucas Jackson

Traders work on the floor at the New York Stock Exchange just after the opening bell, March 8, 2013.

Credit: Reuters/Lucas Jackson

(Reuters) - The New York Stock Exchange is readying plans to be able to operate without human traders in case another disaster, such as Superstorm Sandy, forces the shutdown of its historic trading floor in downtown Manhattan, The Wall Street Journal reported.

NYSE Euronext NYX.N is preparing to submit details of the plan to the U.S. Securities and Exchange Commission, according to the report, which cited people involved in the preparations. If activated, the plan would represent the first time the 221-year-old exchange would rely entirely on computer systems, without the oversight of floor-based traders, the paper said.

A NYSE spokesman declined to comment on the report.

The disaster plan would shift trading entirely to Arca, NYSE's all-electronic sister market. It would replace NYSE's current backup plan that calls for the exchange to remain open in a limited capacity while sending orders to Arca to be filled.

Exchanges including Direct Edge Holdings LLC and BATS Global Markets Inc BATS.Z in the past year have moved to develop backup sites in Chicago, the paper said. Nasdaq OMX Group Inc (NDAQ.O) maintains a disaster recovery site in Ashburn, Virginia, and can run its U.S. markets from its European base in Stockholm.

Superstorm Sandy forced the first weather-related multi-day shutdown of the U.S. stock market in more than 120 years when it struck the East Coast in October.

(Reporting By Susan Kelly in Chicago; editing by Gunna Dickson)

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Comments (38)
jschmidt2 wrote:
Not terribly exciting. Nasdaq has had Disaster Recovery capability since the early 80s. After 9/11, Nasdaq could have operated fine. The limiting factor was the destruction of communication lines into NYC that were destroyed by the falling towers. A number of trading firms could not play in the market until the lines were restored. The DR capability should require being on a different power system, in a different location, and with generator backup. Nasdaq had that. NYSE didn’t until the 90s. It is a big expense but worth in situations like the East Coast blackout, 9/11 and storms like Sandy where water takes out power. But this in no way means, NYSE is getting rid of floor traders because they do provide a service in markets where news creates distortion.

Mar 09, 2013 7:28pm EST  --  Report as abuse
chicadee wrote:
Nobel Peace Prize Nominee: Obama Asks Military Leaders If They Will “Fire On US Citizens”

Paul Joseph Watson
January 22, 2013

2009 Nobel Peace Prize nominee Jim Garrow shockingly claims he was told by a top military veteran that the Obama administration’s “litmus test” for new military leaders is whether or not they will obey an order to fire on U.S. citizens.

Garrow was nominated three years ago for the prestigious Nobel Peace Prize and is the founder of The Pink Pagoda Girls, an organization dedicated to rescuing baby girls from “gendercide” in China. Garrow has been personally involved in “helping rescue more than 36,000 Chinese baby girls from death.” He is a public figure, not an anonymous voice on the Internet, which makes his claim all the more disturbing.

“I have just been informed by a former senior military leader that Obama is using a new “litmus test” in determining who will stay and who must go in his military leaders. Get ready to explode folks. “The new litmus test of leadership in the military is if they will fire on US citizens or not”. Those who will not are being removed,” Garrow wrote on his Facebook page, later following up the post by adding the man who told him is, “one of America’s foremost military heroes,” whose goal in divulging the information was to “sound the alarm.”

Mar 09, 2013 7:29pm EST  --  Report as abuse

Now the high-frequency traders can steal ALL our money!

Mar 09, 2013 7:42pm EST  --  Report as abuse
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