Exchanges Batten Down The Hatches For Hurricane Irene
August 26 2011 - 8:05AM
Dow Jones News
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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