SECURITIES INDUSTRY

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SECURITIES INDUSTRY BUSINESS CONTINUITY
TEST Saturday, June 7, 2008 Coordinated
by  Securities Industry and Financial Markets
Association and Financial Information Forum
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VERSION DATE 5/2/2008
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TEST OVERVIEW

• Test Date Saturday, June 7, 2008
• Objective Exercise and verify the ability of
  firms, markets and utilities to operate through
  an emergency using backup sites, recovery
  facilities and backup communications capabilities
  across the industry
• This test will not simulate an outage in any
  specific geographic area. Instead, all firms
  will connect simultaneously from their backup
  business and technology sites to the markets and
  industry utilities
• This is a test of market connectivity that
  includes some processing interactions but is not
  a full test of internal systems of firms and
  exchanges

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TEST SCOPE

• Test components
• Equities DTCC FedWire
  Derivatives
• Fixed Income Omgeo CHIPS
• Options Market Data SWIFT
• The 2008 test will include a simulated delayed
  opening of the equities and options markets at
  1000 a.m. Eastern Time
• Firms will transmit dummy orders to markets and
  receive simulated execution reports and will
  conduct certain settlement and payment
  interactions.
• Firms will conduct test transactions with payment
  systems.
• Firms will receive and verify market data through
  connections at their backup sites.
• SIFMA will compile and publish aggregate test
  results based on input from exchanges. Results
  for individual participants will remain strictly
  confidential.

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TEST FORMAT

• An overall testing window will be open from 900
  a.m. to 400 p.m. Eastern Time on 6/7.
  Individual exchanges and markets will announce
  their specific test windows. Equities and options
  markets will simulate a delayed opening at
  1000a.m. Eastern Time on 6/7.
• Exchanges and markets will provide time for
  pre-test setup on test day prior to the test
  windows.
• Firms will submit two orders for each of several
  designated symbols on each exchange/market using
  real symbols and real accounts. Firms will
  receive execution reports from the markets.
• Exchanges and markets may make their own specific
  modifications to the general test format.

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TEST FORMAT (continued)

• Firms will conduct specified interactions with
  payment entities.
• Firms will verify market data applications from
  backup sites
• Price data and symbols to be used for each market
  will be provided to participants as test scripts
  prior to the test.
• Exchanges and markets will purge all test date
  from systems prior to Monday market opening.
• Prior to the test, firms may test their
  connectivity with exchanges on 4/5 and 5/3 or
  other dates designated by each exchange.

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PARTICIPATING MARKET ENTITIES
Equities NYSE/Euronext NASDAQ AMEX Philadelphia
Stock Exchange National Stock Exchange Chicago
Stock Exchange
Fixed Income Alternative Trading Systems
BondDesk TradeWeb MarketAxess The
Municenter Inter-Dealer Brokers eSpeed
ICAP Clearing Banks Bank of New York JP
Morgan Chase
Service Bureaus Broadridge CRI Fidessa Lava
Trading LiquidPoint ReadQ SunGard Phase 3 SunGard
Brass Thomson Transaction Services
Options The Options Clearing Corporation American
Stock Exchange Chicago Board Options
Exchange International Securities
Exchange Pacific Exchange Philadelphia Stock
Exchange Boston Options Exchange
Market Data Bloomberg Thomson Financial
eSignal Reuters Telekurs FT Interactive Data
DTCC Omgeo (TradeSuite) SWIFT
Payment Systems Fedwire CHIPS SWIFT
Derivatives Deriv/SERV
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GENERAL TEST REQUIREMENTS
WHO MAY PARTICIPATE? The test is open to all
securities firms providing they have pre-tested
communications links from the backup locations
they will use during the test through to the
exchange and industry utilities sites. WHAT
BACKUP SITES ARE TO BE USED? The objective of the
test is to have all participants operate from
their backup locations to the greatest degree
possible. It is intended that firms will
activate backup 1) data center, 2) operations and
3) trading sites. WHAT STAFF IS REQUIRED FOR THE
TEST? Each participating organization will
determine the number of employees necessary to
conduct the test. There is no minimum or maximum
staff size but, in keeping with the intent of the
test, it is suggested that each firm assign some
staff to backup 1) data center, 2) operations and
3) trading sites.
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GENERAL TEST REQUIREMENTS (Continued)
HOW DOES AN ORGANIZATION REGISTER FOR THE
TEST? An online registration system will be
available on the SIFMA website in late March.
Registrations must be submitted through this
system by close of business Friday, May 2. CAN
FIRMS PARTICIPATE IN THE TEST THROUGH SERVICE
BUREAUS? Broadridge, Thomson Transaction
Services, SunGard Phase 3, SunGard Brass,
Fidessa, Townsend Analytics and Lava Trading are
expected to participate. Clients of these service
bureaus may participate providing that they have
tested connectivity to the service bureau backup
sites prior to the June 7 test.
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GENERAL TEST REQUIREMENTS (Continued)
WILL REGULATORS AND THE PRESS BE INVOLVED IN THE
TEST? Regulators will not participate directly in
the test but, of course, have a significant
interest in the overall results. SIFMA will
brief the regulators prior to, during and after
the test regarding the test process and the
aggregate results. The press is not permitted to
observe the conduct of the test. SIFMA will hold
press briefings, issue press releases and conduct
press interviews prior to and after the
event. WILL PARTICIPANT BRIEFING CALLS BE
HELD? There will be two briefing calls prior to
the test where participants may ask questions.
Representatives of the exchanges, markets and
utilities will be available on these calls.
Briefing calls are scheduled for Thursday, 4/24,
200 p.m. Eastern Time and Thursday, 5/22, 200
p.m. Eastern Time.
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TEST INSTRUCTIONS

• Detailed documentation is posted on the SIFMA
  website at
• http//www.sifma.org/services/business_continuity/
  html/industrytest08.shtml
• A link is available on the SIFMA.org home page.
• This site will be updated periodically as
  additional materials are finalized.
• Participant instruction packages will include the
  following
• Test Overview (this presentation document)
• Summary of Test Components
• Test Scripts Package
• Individual Instructions From Exchanges, Markets
  and Utilities
• (These will vary by exchange)

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Questions regarding the overall test plus
Equities and Fixed Income Howard Sprow
(SIFMA) 212-618-0548, hsprow_at_sifma.org Questions
regarding the Options component Joe
Pellegrini (OCC) 972-501-8290, jpellegrini_at_theocc.
com Questions regarding the DTCC component
Anthony Pietanza (DTCC) 212-855-5682,
apietanza_at_dtcc.com Questions regarding the Omgeo
component David Cutright (Omgeo)
David.Cutright_at_omgeo.com Questions regarding
Service Bureaus and the Market Data component
Arsalan Shahid (FIF) 212-422-8568,
fifinfo_at_fif.com Questions regarding CHIPS
David LaFalce (The Clearing Houise)
David.LaFalce_at_theclearinghouse.org Questions
regarding FedWire Carl Lundgren (NY Fed)
carl.lundgren_at_ny.frb.org
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DOCUMENT CHANGE HISTORY
3/13/2008 Initial release 3/18/2008 Corrected
briefing call dates on Slide 9 3/24/2008 Added
NSX on Slide 6 3/25/2008 Added CHX on Slide
6 4/24/2008 Added Derivatives on Slides 3 and
6 4/28/2008 Added LiquidPoint on Slide
6 5/1/2008 Added ReadQ, deleted Townsend
Analytics on Slide 6