Super hurricane Sandy wiped out most of the tri-state area last week. Causing billions of dollars in damages and crippling business. Whenever storms such as Sandy appear institutions rush to implement their Disaster Recovery Programs, or Business Continuity Plans (BCP). The NYSE Euronext may have to dust off their BCP plan to be more prepared for the next Sandy. Wikipedia defines a BCP as:
“identifies an organization’s exposure to internal and external threats and synthesizes hard and soft assets to provide effective prevention and recovery for the organization, while maintaining competitive advantage and value system integrity”
In this age of technology and redundancy planning shouldn’t the NYSE have plans in place to operate at another location? If the NYSE completes 1 billion trades a day and they earn $.01 per trade that costs shareholders $10 million per day in lost revenue. I understand that traders and other market makers need to be present for the exchange to function properly, but somewhere along the line the BCP failed for NYSE. Why not pull all “critical personnel” out to Chicago a week prior to the storm?
I understand this storm was devastating, but $NYX board members should be asking some tough questions to management.