Exchanges Batten Down The Hatches For Hurricane Irene

Exchanges laid out plans late Thursday to cope with the high winds and heavy rain expected as Hurricane Irene moves northward, in what is expected to be Mother Nature's second big disruption for the eastern U.S. within a week.

Officials planned to convene conference calls and visit data centers housing key trading systems throughout the weekend, as Irene seems on a path to hit the New York financial hub on Saturday and Sunday.

"We intend to be open for trading on Monday, and we have contingency plans in place for such events with a goal of having the market up and running while ensuring the safety of our people," said a spokesman for NYSE Euronext (NYX).

Hurricane Irene on Thursday passed over the Bahamas and late in the day was on a course toward North Carolina's coastline, where it is predicted to arrive Saturday and bring 5 to 10 inches of rain.

The storm's center is anticipated hitting New York City on Sunday, according to the National Hurricane Center. It would be the first hurricane to strike the city in about 25 years, and New York City officials said Thursday they anticipated heavy rains and winds of 39 to 73 miles per hour.

On Tuesday, a 5.8 magnitude earthquake centered in Virginia tested the infrastructure supporting the electronic systems that handle the bulk of U.S. trading in stocks and derivatives.

No glitches or damage to trading operations was reported following the quake, but on Thursday exchanges were already going over contingency plans to ensure access to key buildings and the availability of alternative power supplies should Irene deliver a severe blow to the financial hub.

"Nasdaq is going to continually inspect our systems and data centers throughout the weekend and provide regulator updates to our customers as needed," said a spokesman for Nasdaq OMX Group Inc. (NDAQ). The company planned to run its electronic stock and derivatives markets as usual after the weekend, he said, as well as the Philadelphia trading floor that houses its PHLX options market.

The New York Mercantile Exchange's floor is also scheduled to open as usual on Monday, according to a spokesman for parent CME Group Inc. (CME), which will monitor the storm's influence.

Employees of Direct Edge, operator of two electronic stock exchanges, planned a visit Sunday to the company's data center facility in Secaucus, N.J., to assess any damage, according to a notice sent to traders.

Beyond this week's earthquake, exchanges and trading firms have this year already weathered several blizzards that at times kept some traders away from floors in New York and Chicago, but did little to hamper investing activity, now heavily automated across most markets.

The last time the New York Stock Exchange closed due to a hurricane was Sept. 27, 1985, when Hurricane Gloria shuttered the Big Board for an entire day. In 1976, the NYSE closed early on Aug. 6 due to a hurricane watch.

-By Jacob Bunge, Dow Jones Newswires; 312 750 4117; jacob.bunge@dowjones.com

--Jerry A. DiColo and Rebecca Smith contributed to this article.

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