The New York Stock Exchange (NYSE) is planning to establish a mechanism, which could automatically take the rein of trading operations at the exchange, in the emergence of an unforeseen natural disaster.
Last year super storm Sandy forced the exchange to shut down its historic trading floor in Manhattan, subsequently its parent company NYSE Euronext is preparing a backup plan to prevent such incidents happening again, as reported by the Wall Street Journal.
The strategy, which outlines that the operation of whole exchange will entirely depend on computers, is expected to be submitted to the US Securities and Exchange Commission (SEC) for its approval.
As per the proposed disaster plan, it will shift all of the trading activities to Arca, NYSE’s all-electronic sister market and the NYSE itself will close.
If the proposed plan is approved and implemented, it will eliminate the human interference to manage securities to market without the oversight of floor-based human traders.
It would replace NYSE’s current backup plan that requires for the exchange to remain open in a limited capacity while sending orders to Arca to be filled.
Other exchanges including Direct Edge Holdings and BATS Global Markets have developed their backup sites in Chicago, while Nasdaq OMX Group has built a disaster recovery site in Ashburn, Virginia.