| NEW YORK, July 23
NEW YORK, July 23 NYSE Euronext has
revised its back-up plan for trading if an emergency closed the
New York Stock Exchange and its trading floor, with a proposal
that would make it easier for broker-dealers to adjust their
The plan would transfer trading in NYSE-listed stocks to the
exchange operator's all-electronic market, Arca, and is subject
to approval from the U.S. Securities and Exchange Commission. It
was posted on NYSE's website late Monday.
NYSE has had a contingency plan in place since 2009, which
has never been used, that would also use Arca as a backup for
the NYSE. The new plan, however, would reduce the amount of
coding changes that broker-dealers would need to make to their
computer systems in advance of an emergency.
Last year was marked by a number of software glitches that
roiled the securities industry, including the failed market
debut of BATS Global Markets, the botched Facebook IPO on
the Nasdaq, and a costly trading error at Knight
Capital Group that led to the firm's sale.
The markets were also closed for two days in late October
when Superstorm Sandy bore down on the Northeast coast, causing
widespread flooding, including in Lower Manhattan and parts of
New Jersey, where NYSE and many trading firms are located.
The SEC responded in March, proposing a sweeping new rule
that would require entities such as exchanges, which are
"essential to the smooth functioning of the U.S. securities
markets," to have comprehensive technology plans and procedures
During Superstorm Sandy, NYSE had discussed opening for
business under its contingency plan as a purely electronic
trading firm for the first time in its history. But many trading
firms had not tested the backup plan, and there were major
safety concerns about sending employees into Manhattan to recode
systems so that orders could be properly routed to the exchange.