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Tuesday, November 8, 2022

UTP Vendor Alert #2022 - 18
2023 Failover and Market Wide Circuit Breaker Testing Schedule

Markets Impacted:

Products Impacted:

Contact Information:

What you need to know:

  • 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 the scheduled dates both the SIAC and UTP SIPs, for the CTA, OPRA and UTP data services, will participate in simulated scenarios requiring switchover to the affected SIPs Secondary Recovery site along with MWCB testing as well as a dedicated test, conducted annually, specific to MWCB.
  • Testing will be conducted between 9:00 - 11:30 a.m. ET. Specific failover times will be unannounced in order to simulate unexpected real-time occurrences.
  • Testing Schedule for 2023 is as follows:
    • Saturday, April 1, 2023 (Failover; MWCB Level 1 & 2 Test #1)
    • Saturday, July 22, 2023 (Failover; MWCB Level 1 & 2 Test #2)
    • Saturday, September 9, 2023 (Dedicated MWCB Level 1, 2 & 3)
    • Saturday, December 3, 2023 (Failover; MWCB Level 1 & 2 Test #3)

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 final test for 2022 will be conducted on Saturday, December 3, 2022 between 9:00 - 11:30 a.m. ET.

What is the scheduled switchover timeline?

In order to simulate an unexpected real-time occurrence, specific switchover times will be unannounced, and could take place anytime between 9:30 - 11:30 a.m. ET. In order to facilitate exchange participants testing and allow the direct data recipient’s time to validate their processing, the SIPs (CTA, OPRA and UTP) will switchover at separate times.

Are direct data recipients required to test?

Direct Data recipients are invited to participate in these scheduled weekend tests to validate their internal processing and ensure that the switchovers are performing as expected within their systems. Direct Data recipients do not need to make any changes and should just observe the data dissemination.

What is the expected behavior on the UTP data feeds during switchover?

Primary site server failovers:

The UTP SIP will execute a series of simulated quote and trade primary data center server failures. Exchange Participants should immediately reconnect to the secondary (backup) server which is running in parallel with the primary server within the primary data center.

Direct data recipients should not experience any interruption of data dissemination.

Failover to secondary data center scenario:

The UTP will failover UTP Quote/Trade services to the secondary data center. Exchange participants will be required to connect to the secondary data center for all their input connections. Exchange participants will be required to connect to the secondary data center for all their input connections, within 10 minutes of switchover.

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

Yes, on the Failover weekend tests Market-Wide Circuit Breaker Decline Level Status messages (Category A Type C) including the Level 1 & Level 2 decline level values will be disseminated over the UTP feeds. Randomly, Market-Wide Circuit Breaker Status (Category A Type D) messages announcing Level 1 and Level 2 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. As the Level 3 breach required functionality is to halt and not resume all securities for the remainder of the trading day, Level 3 testing will not be conducted as part of this test.

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.

What is the 2023 Testing Schedule?

Both the SIAC and UTP SIPs will participate in simulated failover/MWCB scenarios on the following Saturdays:

  • Saturday, April 1, 2023 (Failover; MWCB Level 1 & 2 Test #1)
  • Saturday, July 22, 2023 (Failover; MWCB Level 1 & 2 Test #2)
  • Saturday, September 9, 2023 (Dedicated MWCB Level 1, 2 & 3)
  • Saturday, December 3, 2023 (Failover; MWCB Level 1 & 2 Test #3)

Who should I contact for additional information?