Industry-Wide Business Continuity Test

Date

Saturday, October 14, 2017

Time

9:00am - 1:00pm EST

Overview

This is a critical exercise that highlights our industry’s ability to operate through a significant emergency using backup sites, recovery facilities and backup communications capabilities across the industry. SIFMA urges all firms to participate in this important event.

Reg SCI and the SIFMA Industry Test

As in 2o16, Reg SCI entities will carry out their testing requirements on October 14, in parallel with the SIFMA industry test. The attached presentation outlines the difference between the two test programs and implications how market participants approach this year’s testing programs.

Overview of SIFMA Industry Test vs. Reg SCI (July 20, 2017 Version)

SIFMA, working together with the Reg SCI entities and its members, is developing a playbook for Reg SCI testing in 2017. The playbook outlines a common approach to the test across test entities, including a schedule for test day, test scope, shared principles for test outlines, and test symbols. An updated playbook will be released later this summer.

Industry Test Registration

Please see below for detailed information on the test components that will be used for execution.

The registration platform now includes the option to designate individuals as a pre-test contact who will receive information in advance of the test, as well as designating a test day contact. Please see the overview presentation for additional details.”

Schedule & Milestones

  • July 1, 2017 – All Exchanges, Markets and Utilities identified, manner of participation and contact information provided
  • July 21, 2017 – Registration opens for participants
  • August/September – Pre-Test period (dates to be posted as soon as available per each Exchange, Market or Utility)
  • August 31, 2017  – Industry Test Entities Provide Scripts to Registered Test Participants
  • August 16, 2017, 3:00pm – 4:00pm EST – Exchange, Utility & Service Provider Project Team Call
  • September 7, 2017, 4:00pm – 5:00pm EST – First Industry Test Participants and Providers Coordination Call
  • September 19, 2017, 4:00pm – 5:00pm EST – Second Industry Test Participants and Providers Coordination Call
  • October 5, 2017, 4:00pm – 5:00pm EST – Final Industry Test Participants and Providers Coordination Call
  • October 6, 2017 – Final Instructions Distributed to All Participants
  • October 14, 2017, 9:00am – 1:00pm EST – SIFMA Industry Test

Components

Industry-wide tests follow a consistent format whereby firms submit test orders and transactions from their backup sites to markets and utilities.

The test is supported by all major exchanges, markets and industry utilities.  The exercise involves test transactions for commercial paper, equities, options, futures, fixed income, settlement, payments, Treasury auctions and market data. On the same day, the Futures Industry Association (FIA) leads the futures test component and Financial Information Forum (FIF) coordinates market data vendors and service bureaus.

SIFMA compiles and discloses aggregate test results (but not individual performance).

Test Components

Industry-wide tests follow a consistent format whereby firms submit test orders and transactions from their backup sites to markets and utilities.

2017 test components are available here  (xlsx)

The test is supported by all major exchanges, markets and industry utilities.  The exercise involves test transactions for commercial paper, equities, options, futures, fixed income, settlement, payments, Treasury auctions and market data. On the same day, the Futures Industry Association (FIA) leads the futures test component and Financial Information Forum (FIF) coordinates market data vendors and service bureaus.

SIFMA compiles and discloses aggregate test results (but not individual performance).  For prior year’s test results, please view our Archives.

Overview of 2017 Test Results

The 2016 test followed the format of prior industry-wide tests where firms submit test orders and transactions from their backup sites to the markets and industry utilities.  The test involved components for Equities, Options, Fixed Income, Clearing and Settlement Utilities, Market Data, Payment Systems, Treasury Auctions, Service Bureaus and FX.  The exercise was supported by all major exchanges, markets and industry utilities.  Participation in the test was voluntary and results for specific firms, exchanges, markets and utilities are retained in strict confidence by SIFMA.

Participants in the SIFMA test included 110 securities firms and 63 market organizations.  During the test approximately 1,100 communications connections were establish between securities firms and banks and the exchanges, markets and utilities.  Test transactions on these connections were successful 97% of the time.  These results were generally comparable to prior tests.  These results underscore the ability of the securities industry to operate through adverse conditions.
Summary of Results