[RT] Short term it is working with delaying of U.S. equity mkt open until Fri.... they are getting stability however it may be short lived

[Dorothy Carter <dorothy.carter@xxxxxxxx>]

On Bloomberg a chap from  Price 
Waterhouse/Tokoyo just explained further reason for delays in opening 
trading.  Cantor Fitzgerald is a large  govt bond trader who was 
located on 101st floor and lost many employees in disaster.  I don't think 
he was talking about them but concern is that some of the smaller bond & 
currency dealers who don't have backup data to put together trades that 
were done On Sept 7th & 10 due to lost data or  missing staff who know 
trades and who owes who will require crisis management which these firms have 
and rapid intra day decisions will have to be made on bond and currency trades 
that were put on prior to the WTC tragedy.  The Fed stands by to provide 
liquidity and the larger firms who have the ability to will just pay and settle 
the trades and then sort it out later to not add to the major disruption that 
may exist after the large moves that have been seen in currencies and along the 
yield curve.  Liquidity is credit risk and the smaller firms may not have 
the liquidity to handle this in a quick mannor to not cause  further 
dislocation in the markets once these markets open.  As mentioned last nite 
most of the major firms have moved their currency operations to 
London.   This will be one of the major concerns that can cause 
concern over the next several days as these markets open up 
trading.



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