An industry-wide business continuity test conducted by US financial market associations to verify the resilience of US securities markets has been successsfully completed.
The Securities Industry Association (SIA), the Bond Market Association (TBMA), the Futures Industry Association (FIA) and the Financial Information Forum (FIF) teamed up last week to conduct the tests, which expanded on prior connectivity assessments, included components for equities, fixed income, options, futures and settlement.
Over 150 firms representing large, mid-size and small New York-based and regional organisations participated in the trial, with 30 of the firms running tests across multiple corporate entities.
During the test participating firms and service bureaus accounting for more than 80% of the market's normal order volume connected simultaneously using backup data centres, backup communications links, alternate trading sites and alternate operations facilities to place test orders, executions and settlement interactions.
Representing over 45 broker dealers in the test, service bureaus - including those run by ADP, SunGard and Thomson - also participated.
"This week, we took another important step towards ensuring the ability of our firms, markets and utilities to collectively operate through an emergency," says Don Kittell, EVP, SIA. "Backup data centres, work area recovery facilities and backup communications capabilities across the industry performed exceptionally well."
"The Street achieved its goal of testing firms' back-up connectivity with exchanges in all markets," adds Joseph Sack, EVP, BMA.