20 October 2017
visit www.response.ncr.com

SIA issues disaster guidelines for unexpected market closures

15 April 2004  |  7857 views  |  0 SIA issues disaster guidelines for unexpected market closures

The US Securities Industry Association has issued guidelines for order routing, clearing, and settling equities and options during an unexpected market close.

The information outlined in the paper provides securities firms, stock markets, industry utilities, and other market participants with a point of reference based on previous unexpected closes. Among the topics it covers are dealing with open orders, locked-in trades, and ex-dividend dates.

John Panchery, SIA vice president and managing director, systems and technology, says the aim of the paper is "to prepare industry participants now before an unanticipated interruption to normal market operations".

During the past 30 years, the US markets have closed unexpectedly nine times, due either to 'unexpected but forewarned' closings such as the death of a president, or 'unexpected and spontaneous' closings, like the recent black-outs or terrorist attacks.

Thomas Quinn, chairman of the DMD working group that drafted the guidelines, says the paper will help market participants anticipate common operational issues during an unexpected crisis.

He stresses: "It does not supplant the decision-making authority of each market and exchange to remain open or decide to close amid an unexpected emergency."

The guidelines would "kick in" once the decision to close is made by each organisation, states Quinn.

The Depository Trust & Clearing Corporation recently published its draft plan to address interruptions in daily processing due to unscheduled closings or a protracted system failure. The plan summarises how DTCC would handle these incidents and also encourages industry participants to assess their own operations.

Comments: (0)

Comment on this story (membership required)

Finextra news in your inbox

For Finextra's free daily newsletter, breaking news flashes and weekly jobs board: sign up now

Related stories

Investment in BCP by US securities industry to decline - TowerGroup

Investment in BCP by US securities industry to decline - TowerGroup

25 March 2004  |  3713 views  |  0 comments
DTCC calls for disaster planning dialogue

DTCC calls for disaster planning dialogue

04 March 2004  |  6315 views  |  0 comments
Nasdaq to conduct disaster recovery tests

Nasdaq to conduct disaster recovery tests

16 January 2004  |  4806 views  |  0 comments
Smaller firms lag in disaster recovery planning

Smaller firms lag in disaster recovery planning

10 November 2003  |  5253 views  |  0 comments
Euroclear launches EUR100 million business continuity programme

Euroclear launches EUR100 million business continuity programme

13 October 2003  |  5420 views  |  0 comments
FSTC posits business continuity clearing house concept

FSTC posits business continuity clearing house concept

10 October 2003  |  4723 views  |  0 comments
New York blackout casts shadow on communications lines - SIA

New York blackout casts shadow on communications lines - SIA

24 September 2003  |  5225 views  |  0 comments

Related company news

 

Related blogs

Create a blog about this story (membership required)
visit www.niceactimize.comvisit www.capgemini.comRegister now

Who is commenting?

Top topics

Most viewed Most shared
Ripple looks to drive bank adoption with $300m XRP rebate programmeRipple looks to drive bank adoption with $...
15978 views comments | 12 tweets | 4 linkedin
Swift positive on blockchain, but big challenges remainSwift positive on blockchain, but big chal...
9068 views comments | 16 tweets | 23 linkedin
satelliteGates Foundation backs Ripple collaboratio...
8212 views comments | 13 tweets | 10 linkedin
IBM uses blockchain to improve cross-border payments processingIBM uses blockchain to improve cross-borde...
7219 views comments | 9 tweets | 17 linkedin
HSBC partners Bud for open banking trialHSBC partners Bud for open banking trial
6790 views comments | 19 tweets | 25 linkedin

Featured job

circa £250K total package
London

Find your next job