Regulatory notification clock
Many jurisdictions require prompt disclosure of trading disruptions, turning a technical incident into a compliance deadline within minutes.
Broker-dealer
Trading downtime is priced in seconds, not hours.
A broker-dealer outage during market hours combines lost trading volume, regulatory notification obligations, and reputational damage that compounds fast. Defaults below reflect a low-frequency, high-severity profile.
Scroll for why minutes matter
Why minutes matter
The clock starts on more than trading.
A trading outage triggers obligations well beyond lost commissions — client best-execution duties, regulatory notification windows, and market-maker commitments all run on their own clocks the moment systems go down.
Best-execution exposure
Clients unable to execute during volatile moves may have a claim for missed execution, adding a liability the direct revenue figure doesn't capture.
Market-maker obligations
Firms with quoting obligations can face exchange penalties for failing to maintain a market, independent of the revenue impact modeled here.
FAQ
Broker-dealer outage cost, answered.
Questions that come up when sizing the cost of a trading system outage.
Why is the default MTTR so short?
Trading infrastructure typically has aggressive recovery targets given regulatory expectations and the cost of extended downtime during market hours — 30 minutes is a common target ceiling, not a typical outcome.
Does this model regulatory penalties?
Not directly — regulatory fines and enforcement actions are case-specific and not included in the hidden-tax multiplier. Add them separately if relevant to your situation.
Should off-market-hours outages use the same inputs?
No — revenue impact per hour should drop sharply outside trading hours. Consider a separate, lower estimate for overnight or weekend incidents.
How does this compare to general finance downtime?
See the finance industry calculator for retail banking and fintech, which has a different risk profile than trading infrastructure.
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