Business Continuity Planning Status R

Don Serpico October 
© Chicago Mercantile Exchange Inc. All rights reserved. 

Table of Contents• I – CME’s Response to Disruptions of 

Operations

• II – Risk Mitigation• III – Communication Channels
© Chicago Mercantile Exchange Inc. All rights reserved. 

CME’s Response• Physical Environment Disruptions

 Fire Flood Power Terrorism

• Infrastructure Fail-safes

 Multiple power feeds in Chicago Generators at remote site Working on third facility Ability to run critical systems at both cu

sites
© Chicago Mercantile Exchange Inc. All rights reserved. 

CME’s Response• Disruption Recovery / Alternative Proc

 Open Outcry – Transition major futures 

options to GLOBEX if loss of trading pits

 GLOBEX – fully recoverable at either sit Clearing – fully recoverable at either sit Internal Processes – matching engines, 

gateways, market data infrastructure fureplicated for immediate fail-over

 Clearing Member Firms –

• Back-up processing centers

• Third party disaster recovery outsourcin• Give-up arrangements
© Chicago Mercantile Exchange Inc. All rights reserved. 

CME’s Response• Loss of primary and redundant process

centers

 Reciprocal agreement with CBOT, if CME pro Pursue cooperative efforts with other excha

Chicago issue

• Staffing impact due to a problem

 Regularly scheduled evacuation / fire drills Distributed staff exit holding locations

• Unique phone number by division with update

 ‘Shelter-in-place’ – procedures currently in  Critical staff distributed between Chicago an

site

 Non-critical staff

• Short-term – work at home resumption proce

place

• Longer term – staff deployment to outsourced 
© Chicago Mercantile Exchange Inc. All rights reserved. 

CME’s Response• Executive / Management Disruption

 Crisis management center alternatives

• Cooperative arrangement with CBOT

• Hotel south of the Loop, near third site• Move to existing remote site
© Chicago Mercantile Exchange Inc. All rights reserved. 

Risk Mitigation• FIA / Industry-coordinated tests 

 10/9/04 first of ongoing processes

• Full industry tests

• Network connectivity tests• Table-top ‘what-if’ exercises

• Chicago Financial Industry Coordinatio

 ChicagoFIRST – first in the country

• Ongoing fail-safe and reactive coordinat

 City of Chicago

• Police• Fire• Transportation• Water

 Major Telecommunication Carriers Major Utilities State Police Federal Agencies – Homeland Security
© Chicago Mercantile Exchange Inc. All rights reserved. 

Risk Mitigation• Financial Services Sector Coordinating 

 CME – first future’s industry member Focus on -

• Knowledge-sharing 

• Best practices• Telecom, electric power and information 

• CME Full Business Continuity Plans

 Response Resumption Recovery Restoration
© Chicago Mercantile Exchange Inc. All rights reserved. 

Communication Channels• Emergency joint operations center (JO

 CME direct channel to problem(s) Evacuation status ‘shelter-in-place’ dire City exit instructions Financial services industry decision 

communication

• Major cooperative effort with City of Ch

State of Illinois and Federal agencies f

 Surveillance of financial district includin Real-time monitoring Alternative communication channels be

• If telecommunications channels disrupte
© Chicago Mercantile Exchange Inc. All rights reserved. 

Communication Channels• CME to Customers

 Broadcast communication

• Emails

• Voicemails• GLOBEX messages• Faxes• Pagers• Blackberries and other PDAs