Business Continuity & Disaster Recovery Planning at The Chicago Board of Trade Presented By: Bryan Durkin Sr. Vice President The Chicago Board of Trade Futures Industry Association November 7, 2002

Introduction For many years, the Chicago Board of Trade has maintained business continuity plans to minimize market disruptions in the event of occurrences that damage or render useless its trading facilities.

In recent years, the Chicago Board of Trade Disaster Recovery strategies have included, but were not limited to, the following: Redundant power feeds to alleviate the dependency of the CBOT on any particular electrical substation Separate data center in a second building to provide redundancies and fail-over to critical systems Documented disaster recovery and business continuity procedures put in place for the technology systems of the Exchange Hot back-up host outside of the Chicago “loop” for Electronic Trading Subscription with recovery provider for Prices, Wall displays and QVN in a limited Disaster Recovery capacity

Modifications Since September 11, 2001 Creation of a Risk Management Group Hiring of a Business Continuity Manager Developed enhanced BCP Phase 1 and BCP Phase II, solutions for off-site disaster recovery and business continuity in the event of a Chicago metropolitan area disaster Development of a Local area Executive Emergency/Incident Management Command Center Development of a Business Continuity/Incident Management Overview and Strategies Plan Implementation of BCP Phase 1 outlined as follows

BCP Phase 1 Initiative: (Complete) –Provides DR for a/c/e Market operations Allows CBOT to maintain Electronic Trading capability by providing recovery through foreign based hosting facility. Price Quote Data Dissemination capability –a/c/e terminals receive a/c/e quotes only –Quote vendor network delivery available by providing redundant backup facility outside of the Chicago metropolitan area. Provides Disaster Recovery for Office of Investigations & Audits supporting Electronic Trading by providing redundant backup facility outside of the Chicago metropolitan area. Executive Emergency Management/Incident Management Command Center Operation by providing redundant backup facility outside of Chicago metropolitan area. –External communications (telephone, , limited CBOT.com web site) –President’s Office administrative systems support and work-area for supporting business groups defined above –Business Recovery Team Operations support

BCP Phase II Initiative: (In development stage) –BCP Phase II – Will provides Business Continuity solution for: Recovery of all mission critical functions capable of providing data center systems fail-over as well as disaster recovery for: –Open Outcry Trading including associated supporting functionality. Off-site disaster recovery facility for supporting business groups defined above Off-site disaster recovery facility for conducting Open Outcry trading

Validation Planning and implementation are critical, however, on-going Validation by exercising the configuration and plans are a requirement of any Business Continuity Program

BCP Phase 1 Validation July 2002 – A Disaster Recovery Exercise with DBS and the Chicago Board of Trade Clearing Corporation took place in order to validate all components of the Electronic Trading backup-host facility. All proposed objectives were successful. October 2002 – A Disaster Recovery Exercise of the Chicago Board of Trades Electronic Trading supporting systems took place in order to validate all components supporting the Electronic Trading environment. All proposed objectives were successful. On-going, integrated exercises, will take place at a minimum of two per year. This will begin to include member firm participation in 2003.

Planning Coordination with Member Firms All CBOT member firms have been contacted regarding our “hot” back-up host, and we are working with all of the firms in providing connectivity to that host. The CBOT also sent a survey to all clearing members and member firms which 1) explains our Business Continuity Plan; and 2) requests a detailed description of each member firms business continuity procedures, including their ability to connect to our electronic trading facilities back-up site. Our member firms have also been requested to provide to the CBOT a comprehensive contact list of personnel that would be responsible for implementing their plans should they be impacted by a disaster. We have always coordinated closely with the Board of Trade Clearing Corporation on all of the CBOT’s trading operations due to our connectivity to their clearing functions, and our disaster recovery and business continuity planning is not different.

Questions