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Monday, April 22, 2019

UTP Vendor Alert #2019 - 6
June 8, 2019 Market Wide Circuit Breaker Testing

Markets Impacted:

Products Impacted:

Contact Information:

What you need to know:

  • As announced in UTP Vendor Alert 2018-16, The Security Information Processors (SIPs) for the US equity markets, in cooperation with the National Market Plan Operating Committees, have established a Failover and Market Wide Circuit Breaker (MWCB) Testing Schedule.
  • On Saturday, June 8, 2019, the US Listing exchanges will lead an industry test of all three MWCB breach levels and simulate a day 2 opening within their markets.
  • The Plan Processors (SIAC and UTP) for the CTA, OPRA and UTP data services will participate in this exchange led industry test and will disseminate all data in real time as it is received by the exchange participants.

What has been announced?

The Security Information Processors (SIPs) for the US equity markets, in cooperation with the National Market Plan Operating Committees (CTA, OPRA & UTP), have established a Failover/MWCB Testing Schedule. The next test will be conducted on Saturday, June 8, 2019 and will be a Dedicated MWCB Level 1, 2 & 3-breach test with a day 2 opening.

Will Market Wide Circuit Breaker (MWCB) Testing be conducted?

Yes, in order to test the full functionality of MWCB there will be one dedicated MWCB test conducted annually where all three-breach levels will be conducted. As part of this test, there will be a start of day test to simulate the reopening the following business day after a Level 3 breach.

Part 1 (day 1): On Saturday, June 8, 2019, failover weekend, Market-Wide Circuit Breaker Decline Level Status messages (Category A Type C) including the Level 1, Level 2 & Level 3 decline level values as well as Market-Wide Circuit Breaker Status (Category A Type D) messages announcing Level 1, Level 2 & Level 3 breaches will be disseminated over the UTP feeds.

Once Market-Wide Circuit Breaker Decline Level Status messages are disseminated, listing exchanges are anticipated to generate Cross SRO trading action messages (Category A Type H) for all securities and not re-open for 15 minutes (Level 1 and Level 2). After 15 minutes have expired each for Level 1 and Level 2 breaches, listing exchanges are anticipated to resume trading in all securities. The Level 3 breach functionality is to halt and not resume all securities for the remainder of the trading day. After the Level 3 breach, the testing will wait for 30 minutes to ensure no resumption messages are disseminated this will conclude systems testing for Part 1 (day 1) of MWCB testing.

Part 2 (day 2): Conducted on the afternoon, Saturday, June 8, 2019, the US Listing exchanges will complete their MWCB testing by simulating a day 2 opening of their markets.

Note: All messages will use the test date of June 8, whether Day 1 or Day 2. All SIP disseminated messages will reflect the real time and be disseminated in real time.

Additional details will be published by individual exchanges.

Who should I contact for additional information?