US financial markets business continuity test scheduled

The US-based Securities Industry Association has written to SIA Managing Executives to inform them that an industry-wide business continuity test will take place on Saturday, October 14, 2006. The test is being led by the SIA, The Bond Market Association, The Futures Industry Association and the Financial Information Forum, as part of the ongoing securities industry testing initiative.

The letter explains that the format of the 2006 test will be similar to the October 15, 2005 test, but is expected to include additional payment and market data components. “During the test, firms and service bureaus will connect simultaneously using backup data centers, backup communications links, alternate trading sites and alternate operations facilities to place test orders, receive simulated executions and conduct settlement interactions. The exercise will involve transactions for equities, options, futures, fixed income and settlement.”

SIA also states that: “This is a critical exercise that will highlight our industry's ability to operate through a significant emergency using backup sites and backup communications capabilities across the industry. We urge all firms to participate in this important event. At this point, we encourage organizations to save the date and begin assembling all internal groups that will be needed to conduct the test.

“This test will not simulate an outage in any specific geographic area. Instead, all firms will connect simultaneously from their backup business and technology sites to the markets and utilities. SIA will compile aggregate results, but will not reveal the individual performance of any organization.”

http://www.sia.com/business_continuity/

•Date: 7th Feb 2006• Region: US • Type: Article •Topic: Financial sector
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