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Disaster Recovery for the NYSE

Traders Magazine, August 2002

Robert A. Schwartz

The New York Stock Exchange, a crucial part of the financial system, must be able to survive a disaster. That includes damage to the exchange trading floor at 11 Wall Street. The tight security at the exchange - one of the most powerful symbols of our market-based economy - has become even tighter since September 11 last year. However, the guards, barricades, checkpoints, and surveillance equipment are not enough. The Big Board, recognizing this, has been making plans to develop an off-site trading floor. It could also count on Nasdaq and the regional exchanges to help out at a time of crisis. However, storing a second trading floor in mothballs may not be the only answer. An adequate backup must satisfy three criteria. First, the system must be electronic and not present a physical target. Second, traders both on and off the floor must be thoroughly familiar with the system. This requires that it is used on a daily basis under normal conditions. Third, the system must not interfere with the daily operations of the NYSE's regular market.

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