|
PureBytes Links
Trading Reference Links
|
>
>Nothing like a "Non Performance" clause in the contract to increase
>reliability - MCI Worldcom should agree to pay up to the exchange, members
>and users if they screw up again - if non performance is not part of the
>existing agreement then you've gotta ask
>why ??
>
>
>
>>It is really pathetic that something as serious as this has yet to be
>fixed!
>>
>>fcul44@xxxxxxxx
>>
>>
>>CBOT Says MCI WorldCom Glitch Idles Trading Network (Update1)
>>
>>Bloomberg News
>>August 10, 1999, 8:30 a.m. PT CBOT Says MCI WorldCom Glitch Idles Trading
>>Network (Update1)
>>
>>
>>(Adds details about Project A in 2nd-8th paragraphs, add CBOT's trading
>>volumes in 10th-11th paragraphs and an analyst comment in 14th paragraph.)
>>
>>
>>Chicago, Aug. 10 (Bloomberg) -- The Chicago Board of Trade said much of
its
>>electronic trading system has been crippled since last week by a
>>``catastrophic'' outage of a switching system operated by MCI WorldCom
Inc.
>>
>>The CBOT, the largest U.S. derivatives exchange, said the Project A system
>>has been unavailable to customers outside its Chicago headquarters since
>>late Thursday. Trading volume on Project A represents about 5 percent of
>the
>>exchange's total. ``We have been told the problem has been traced to an
>>outage at a major MCI WorldCom switching center, which has caused several
>>network data feeders in the U.S. and abroad to become inoperative,'' CBOT
>>President Thomas R. Donovan said in a letter
>>to exchange members today.
>>
>>The problem hasn't affected the exchange's auction-style trading pits,
>where
>>traders buy and sell futures contracts face to face. The CBOT said its
>>local-area computer network is functioning properly.
>>
>>The exchange declined to comment on any losses caused by the system
>failure.
>>
>>Project A allows members to trade futures contracts linked to U.S.
>>Treasuries, the Dow Jones Industrial Average, grains and other
commodities.
>>The CBOT said it will notify members today about possible plans to provide
>>access to more trading terminals on the floor of the Chicago exchange.
>>
>>``We use regular phone lines but MCI Worldcom provides a dedicated data
>line
>>that ensures Project A terminals around the world can communicate with one
>>another and with our system,'' said Bret Gallaway, a spokesman at the
CBOT.
>>
>>``When the problem developed, we couldn't link all the Project A terminals
>>into our system,'' and it had to be shut down, he said.
>>
>>
>>Real Losses
>>
>>
>>``The real loss is in the trading opportunities for our members and
>>customers because people couldn't check prices over the weekend and
>couldn't
>>gauge cash market prices,'' said Gallaway.
>>
>>Last year, about 12 million contracts were traded on the CBOT's Project A
>>system, up from about 6 million in 1997 and 3 million in 1996, the
exchange
>>said.
>>
>>During July, the average daily volume on Project A was 45,000 contracts,
>>including all agricultural and financial futures. Trading on the exchange
>in
>>July totaled 21.43 million contracts.
>>
>>
>>MCI Assurances
>>
>>
>>MCI WorldCom said yesterday that it has had problems since Friday with its
>>frame-relay network that provides data and Internet services to
businesses.
>>Less than 15 percent of the network is affected, primarily in the
Northeast
>>and Chicago.
>>
>>The company was not immediately available today for comment on the CBOT's
>>electronic trading problem.
>>
>>``If a customer's service is disrupted, they're going to be upset. They
>will
>>look for remedy or alternatives,'' said Brian Adamik, an analyst at market
>>researcher Yankee Group based in Boston. ``The key growth engines for MCI
>>Worldcom is data. It's important that their data network be flawless.''
>>
>>As recently as last week, MCI WorldCom assured the CBOT that there would
be
>>no disruptions to service and that the quality of service provided for the
>>Project A system would improve, according to the letter from Donovan.
>>
>>``We have now established a contingency plan and are working on ways to
>>redress this problem,'' Gallaway said.
>>
>>
>
>
|