Business Continuity

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Business Continuity Disaster Recovery
Planningat The Chicago Board of Trade

• Presented By
• Bryan Durkin
• Sr. Vice President
• The Chicago Board of Trade
• Futures Industry Association
• November 7, 2002

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Introduction
For many years, the Chicago Board of Trade has
maintained business continuity plans to minimize
market disruptions in the event of occurrences
that damage or render useless its trading
facilities.
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In recent years, the Chicago Board of Trade
Disaster Recovery strategies have included, but
were not limited to, the following

• Redundant power feeds to alleviate the dependency
  of the CBOT on any particular electrical
  substation
• Separate data center in a second building to
  provide redundancies and fail-over to critical
  systems

• Documented disaster recovery and business
  continuity procedures put in place for the
  technology systems of the Exchange
• Hot back-up host outside of the Chicago loop
  for Electronic Trading
• Subscription with recovery provider for Prices,
  Wall displays and QVN in a limited Disaster
  Recovery capacity

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Modifications Since September 11, 2001

• Creation of a Risk Management Group
• Hiring of a Business Continuity Manager
• Developed enhanced BCP Phase 1 and BCP Phase II,
  solutions for off-site disaster recovery and
  business continuity in the event of a Chicago
  metropolitan area disaster

• Development of a Local area Executive
  Emergency/Incident Management Command Center
• Development of a Business Continuity/Incident
  Management Overview and Strategies Plan
• Implementation of BCP Phase 1 outlined as follows

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BCP Phase 1 Initiative (Complete)

• Provides DR for a/c/e Market operations
• Allows CBOT to maintain Electronic Trading
  capability by providing recovery through foreign
  based hosting facility.
• Price Quote Data Dissemination capability
• a/c/e terminals receive a/c/e quotes only
• Quote vendor network delivery available by
  providing redundant backup facility outside of
  the Chicago metropolitan area.
• Provides Disaster Recovery for Office of
  Investigations Audits supporting Electronic
  Trading by providing redundant backup facility
  outside of the Chicago metropolitan area. 
• Executive Emergency Management/Incident
  Management Command Center Operation by providing
  redundant backup facility outside of Chicago
  metropolitan area.
• External communications (telephone, e-mail,
  limited CBOT.com web site)
• Presidents Office administrative systems support
  and work-area for supporting business groups
  defined above
• Business Recovery Team Operations support

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BCP Phase II Initiative (In development stage)

• BCP Phase II Will provides Business Continuity
  solution for
• Recovery of all mission critical functions
  capable of providing data center systems
  fail-over as well as disaster recovery for
• Open Outcry Trading including associated
  supporting functionality.
• Off-site disaster recovery facility for
  supporting business groups defined above
• Off-site disaster recovery facility for
  conducting Open Outcry trading

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Validation

• Planning and implementation are critical,
  however, on-going Validation by exercising the
  configuration and plans are a requirement of any
  Business Continuity Program

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BCP Phase 1 Validation

• July 2002 A Disaster Recovery Exercise with DBS
  and the Chicago Board of Trade Clearing
  Corporation took place in order to validate all
  components of the Electronic Trading backup-host
  facility. All proposed objectives were
  successful.
• October 2002 A Disaster Recovery Exercise of
  the Chicago Board of Trades Electronic Trading
  supporting systems took place in order to
  validate all components supporting the Electronic
  Trading environment. All proposed objectives
  were successful.
• On-going, integrated exercises, will take place
  at a minimum of two per year. This will begin to
  include member firm participation in 2003.

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Planning Coordination with Member Firms

• All CBOT member firms have been contacted
  regarding our hot back-up host, and we are
  working with all of the firms in providing
  connectivity to that host.
• The CBOT also sent a survey to all clearing
  members and member firms which 1) explains our
  Business Continuity Plan and 2) requests a
  detailed description of each member firms
  business continuity procedures, including their
  ability to connect to our electronic trading
  facilities back-up site. Our member firms have
  also been requested to provide to the CBOT a
  comprehensive contact list of personnel that
  would be responsible for implementing their plans
  should they be impacted by a disaster.
• We have always coordinated closely with the Board
  of Trade Clearing Corporation on all of the
  CBOTs trading operations due to our connectivity
  to their clearing functions, and our disaster
  recovery and business continuity planning is not
  different.

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Questions