NYSE Euronext (NYX) updated its plans for opening its U.S. equity markets during emergencies, almost nine months after Hurricane Sandy prompted the New York Stock Exchange’s longest weather-related shutdown since the 1800s.
In the event of a disaster that prevents the humans who normally run the New York Stock Exchange from reporting for work, transactions would be shifted to the firm’s NYSE Arca platform and coded as having taken place on that venue, according to a filing yesterday.
The October storm shut American markets for two days. In the months that followed, the U.S. Securities and Exchange Commission mandated more testing of disaster preparedness programs. NYSE Euronext said this week’s revision was a response to requests from clients who need to update their systems to handle a shift away from the New York Stock Exchange, the world’s biggest market by the value of listed companies.
“Our proposed plan will simplify customers’ ability to trade” companies listed on the NYSE or NYSE MKT, a venue for smaller companies, Richard Adamonis, an NYSE Euronext spokesman, wrote in an e-mail.
While the New York-based market operator has had a contingency plan involving Arca since 2009, the old system didn’t include the plan to report the transactions as having taken place on that platform. The proposal requires SEC approval.
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