Hurricane? What Hurricane?
UPDATE: The original version of this article was based on a press release from NYSE stating that although the physical exchange would be shut, NYSE-listed securities would be traded on Arca. A subsequent press release and confirmation in a call from NYSE said that the markets would in fact be closed. The article has been updated accordingly.
Sometimes, I'm reminded that although London can be a gloomy, frigid and wet place at the best of times during winter, we never really get shafted by the weather that badly. Sure, it's been unseasonably cold over the last week or so, with temperatures reaching around 40 degrees one evening, but we never have to really deal with tornadoes, earthquakes, volcanoes, tidal waves or the convergence of several storms into one massive, ruin-your-day-style meteorological event.
This was highlighted to me not only by my New York-based better half last night, who insisted she has enough bottled water and tinned food to survive a nuclear apocalypse, should she be stuck inside for a few days, but also by the press release from NYSE noting that markets would be shuttered due to the event.
The release also points out that the last time physical operations were shut down was again due to a hurricane, Gloria, on 27 September 1985.
Electronic Contingency
Given the electronic nature of modern markets, and indeed, the financial industry as a whole, business continuity plans in the absence of physical presence are well-established. Granted, an event such as a devastating terrorist or military attack, a freak natural catastrophe or other areas will always throw a wrench into established procedure, by their very nature, but for those that can be predicted, technology allows for contingent plans to be put in place. NYSE, for instance, has the ability to allow for the traded of NYSE-listed securities on Arca in the event of a market closure, which were tested earlier this year. Despite announcing this would be the case earlier, though, the severity of Sandy has apparently closed all markets completely.
Leave aside views on the demolition of open outcry for a moment; it's quite impressive that markets can continue to function without anyone being there.
For businesses, too, the Internet and cloud will bring continued benefits in the form of these contingencies. Our New York staff, for instance, who aren't in London shortly for the upcoming Buy-Side Technology Awards on Friday, will likely be working from home without much in the way of disruption.
Despite the marvels of technology, however, there is one area which will always throw things into chaos given half a chance. During that aforementioned telephone call last night, I mentioned that a few bonus days off work and law school was a nice side benefit of the hurricane.
"Sure," she replied. "As long as the power lasts."
Here in London and elsewhere, naturally, our thoughts are with our colleagues, friends, families and contacts in New York and the surrounding areas during this period. Stay safe.
Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.
To access these options, along with all other subscription benefits, please contact info@waterstechnology.com or view our subscription options here: http://subscriptions.waterstechnology.com/subscribe
You are currently unable to print this content. Please contact info@waterstechnology.com to find out more.
You are currently unable to copy this content. Please contact info@waterstechnology.com to find out more.
Copyright Infopro Digital Limited. All rights reserved.
As outlined in our terms and conditions, https://www.infopro-digital.com/terms-and-conditions/subscriptions/ (point 2.4), printing is limited to a single copy.
If you would like to purchase additional rights please email info@waterstechnology.com
Copyright Infopro Digital Limited. All rights reserved.
You may share this content using our article tools. As outlined in our terms and conditions, https://www.infopro-digital.com/terms-and-conditions/subscriptions/ (clause 2.4), an Authorised User may only make one copy of the materials for their own personal use. You must also comply with the restrictions in clause 2.5.
If you would like to purchase additional rights please email info@waterstechnology.com
More on Trading Tech
Interop after acquisitions remains daunting for buyers
Executives from a variety of vendors speaking at WFIC explained why desktop interoperability is important and why progress has been slow.
Should banks risk lightning hitting twice for CrowdStrike?
Bank tech teams divided on whether to give security vendor a second chance after update crash.
Northern Trust adds fixed-income capabilities for outsourced trading in Asia-Pacific
The custodian bank now offers 24/6 fixed-income trading coverage with desks in Chicago, London, and Sydney.
South Africa’s equity markets court HFTs with tech upgrades
Competition for flow has driven innovation in connectivity, risk, and data provision.
Dealer relief at delays to Refinitiv Matching’s tech migration
First phase of replatforming for Swiss spot pairs set to be pushed to mid-2025.
Kepler Cheuvreux builds proprietary execution platform with Adaptive
The broker wants to move away from third-party technologies as DORA’s risk management requirements could make vendor relationships more cumbersome.
Let’s grow the third-party risk playbook – CME security chief
The CrowdStrike outage has highlighted the need for the financial sector to adjust its game plan.
Facing platform shutdown, former IEX Cloud head buys its assets in 11th-hour bid
Tim Baker, Pedro Aguayo, and a silent partner have come together to purchase IEX Cloud’s assets days before the exchange was to retire all its products on August 31.