Securities Industry Association, The Bond Market Association To Coordinate Securities Industry’s Participation In TOPOFF3

The securities industry this morning successfully tested its process for coordinating emergency responses as part of the Department of Homeland Security’s TOPOFF3 Exercise. The Securities Industry Association and The Bond Market Association coordinated the industry’s participation, which also involved The Futures Industry Association and professionals affiliated with broker-dealers, exchanges, utilities and regulatory agencies.

The third in a series of Congressionally mandated counterterrorism exercises; TOPOFF3 is the first to include significant involvement from the private sector. It involved terrorist attack scenarios staged in Connecticut and New Jersey.

The financial services industry tested its emergency call sequence, which is triggered in the event of a situation that could disrupt the markets. The calls began at 8:00 a.m. when the command center was activated. After relevant trade association committees were alerted to the simulated emergency, conference calls involving the regulators and the Federal Reserve followed according to a schedule recently developed by regulators, the industry, and the Financial Services Sector Coordinating Council. During the exercise, the securities markets assessed the potential impact of the TOPOFF3 test scenario on market operations.

“The disaster recovery procedures were successful in ensuring that the key players were kept up-to-date on the situation,” said SIA Executive Vice President Donald Kittell. “The participants received the necessary information and were able to communicate among themselves. This resulted in a swift, controlled response to the simulated attack.”

“We need to test our ability to have securities industry leaders call their emergency access numbers,” said Joseph Sack, executive vice president of The Bond Market Association. “This testing helps develop confidence in an emergency.”

The securities industry’s participation in the TOPOFF3 exercise is the latest in a series of initiatives to enhance preparedness for emergency situations. SIA and TBMA have been coordinating an ongoing series of backup site connectivity tests. Both sponsored a joint Tabletop Exercise in May 2004, and the associations, in partnership with other market organizations, are currently developing industrywide order-flow tests to validate the industry’s ability to operate through major disruptions.

The Bond Market Association, with offices in New York, Washington, D.C. and London, represents securities firms and banks that underwrite, trade and sell debt securities and other financial products globally.