By Sarah N. Lynch
WASHINGTON, Aug 16 (Reuters) - U.S. financial market
regulators warned Wall Street on Friday to get its act together
as the hurricane season approached by reviewing business
continuity plans and other preparations for potential
"Market reliability and resilience are vital to investors
and to the fair and efficient operation of capital markets,"
said Andrew Bowden, the director of the Securities and Exchange
Commission's Office of Compliance, Inspections and Examinations.
"We are sharing these lessons learned from Superstorm Sandy
to help industry participants better prepare for future events
that threaten to disrupt market operations."
The alert follows a joint review by regulators at the SEC,
Commodity Futures Trading Commission and Financial Industry
Regulatory Authority in the aftermath of Sandy.
In late October last year Sandy caused widespread damage
along the East Coast and led to a two-day shutdown of Wall
Although exchanges had contingency plans in place at the
time, brokerage firms still had lingering concerns about
possible malfunctions and also felt uncomfortable requiring
their staff to travel into Manhattan during unsafe weather
The storm also caused some brokers to shut down. Knight
Capital Group, a large U.S. market maker, temporarily
stopped accepting client stock orders after a backup power
generator went down.
(Reporting by Sarah N. Lynch; Editing by Phil Berlowitz)