X

Thank you for sharing!

Your article was successfully shared with the contacts you provided.

NEW YORK CITY-The terrorist attacks of Sept. 11, 2001 and the August 2003 blackout were two events here that underscored the need for companies to have disaster recovery plans. A number of major broker-dealers put their plans to the test during a simulation exercise where they responded to a scenario where the city is hit by two bombs-—one in Midtown and another in the financial district.

Working in company teams manned by technology, compliance and operations officers, the companies participated in a four-hour tabletop exercise. As the events of the scenario, escalated, the firms evaluated business continuity plans to check the level of preparedness.

Noting that this effort was just a start, Joseph Sack, executive vice president of Securities Industry Association tells GlobeSt.com that it highlighted both the need for increased communication within the industry and the necessity of having fully functional back offices. “The technology is such that many firms can instantly switch to back up,” he says, adding that the securities firms have invested heavily in preparedness initiatives.

SIA EVP Donald Kittell points out that the exercise underscored the value of “a broad, strong partnership involving broker-dealers, markets, utilities, regulators and other government agencies.”

Participants included volunteers from Bank of America, Bear Stearns, Bank of New York, Citibank, Credit Suisse First Boston, Deutsche Bank, Edward Jones, Goldman Sachs, JP Morgan, Lehman Brothers, Merrill Lynch, Morgan Stanley and UBS. The exercise was a joint effort of the SIA and the Bond Market Association. Other participants included the Securities and Exchange Commission, the New York Stock Exchange and Nasdaq, as well as various data providers, industry utilities, utility providers, and government agencies.

“Uninterrupted communication is vital to the ability of key market participants to keep the markets functioning,” notes Sack. A similar follow-up exercise is planned for the fall.

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 3 free articles* across the ALM subscription network every 30 days
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?

Dig Deeper

GlobeSt

Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2020 ALM Media Properties, LLC. All Rights Reserved.