Disaster scenarios, you either love them or hate them. The end of the civilized world could happen in numerous ways according to doomsayers. Giant tsunamis, killer viruses, global warming… some would say it is a miracle that we all are still alive!
Two weeks ago, society appeared to be close to a global financial meltdown. With 320,000 subscribers globally and revenues of more than $9 billion in 2014, Bloomberg is the world’s largest financial information provider so when its network went down for roughly two hours due to computer system problems, the world reacted accordingly.
The outage occurred at 8am GMT as trading was about to begin in London, one of the world’s largest financial centers, particularly for foreign exchange and bond markets. Suddenly, the financial world ground to a halt. Traders could not work and were forced to revive the Reuters terminals that they had forgotten how to operate. They had to resort to using the phone. Prices of assets and derivatives became inaccurate. Financial obligations could not be met. The outage prompted the British government to postpone a planned £3 billion ($4.4 billion) debt sale, leading to global legal issues.
Eventually, once Bloomberg’s IT systems were restored, the financial world continued business as usual and when trading began in the U.S. a few hours later, most customers were up and running. In a statement, Bloomberg said the failure that led to customer disconnections was caused by excessive volumes of network traffic. The incident demonstrates how connected the global economy has become.
The financial sector now operates in its own financial cloud, where we’re all in this together. The upside of this is more power and liquidity for investors. The downside is that the failure of one component can bring down the entire system.
This challenge must be dealt with. Cyber security must be increased and core systems and infrastructure enhanced. The network is now vital to the continuity of the mega-system. And that is where Custom Connect comes in…
Check our connectivity services for the Financial sector now!