Israeli exchange upgrades contingency plans

The Tel Aviv Stock Exchange (Tase) has upgraded its contingency facilities for trading and clearing to ensure that in the event of an emergency, such as a terrorist attack on the main exchange, systems should continue to function as normal.

Tase has set up the facilities at an undisclosed site outside of Tel Aviv. The backup system, a combination of two existing contingency facilities, should improve efficiency and reduce maintenance costs.

Tase executive vice-president for information technology and operations, Ester Levanon, said the exchange would soon finish the installation of a wireless communication system that would stand in for fixed-line communications should circumstances dictate. One of the problems faced by financial institutions during the World Trade Center terrorist attacks in New York last September was an overloading of telecommunications networks due to the sheer volume of calls from worried friends and relatives.

Tase’s systems have been set up to deal with an extended period of emergency, Levanon said. Tase is owned by 28 member firms and provides an advanced electronic system for the trading of derivatives, Treasury bills, bonds and shares.