New York (AFP)

Faced with fears of the spread of the new coronavirus, large American banks have started to test their emergency measures in the event of a health disaster preventing a large number of employees from going to the office.

Sources familiar with the matter told AFP on Wednesday that JPMorgan Chase, Morgan Stanley, Goldman Sachs, Citigroup, four of the major US banks, had asked hundreds of workers to work from home "in order to test the computer systems and remote access "to their internal networks. These establishments are also testing their backup sites, the sources added on condition of anonymity.

JPMorgan Chase is testing one backup site in west London and two sites in the United States, one in Brooklyn, New York, and one in New Jersey (east), told the AFP one of the sources.

Citigroup did the same in southeast London and New Jersey, as did Morgan Stanley, two other sources said.

Goldman Sachs is carrying out its tests at a rescue site in south London.

If the firm confirmed to AFP to carry out tests, JPMorgan Chase and Morgan Stanley did not wish to speak about their emergency plans. Citigroup did not respond immediately.

"We have backup sites and we test them on an ongoing basis," Maeve Duvally, a spokeswoman for Goldman Sachs, told AFP. "We are increasing the pace of our tests against the coronavirus," she added.

- Home trading room -

The big American banks want to ensure that there will be no interruption of service if the health crisis worsens and leads to the confinement of thousands of employees.

For example, they recreated the trading room environments in the homes of traders by installing additional computers, according to one of the sources.

These banks, which have already limited employee business travel, are testing their backup sites to ensure that they have operational capacities equivalent to their traditional offices.

The goal is to spread the staff on different sites and avoid mass containment.

While it is not particularly complicated to have administrative staff working remotely, many problems emerge, however, when it comes to traders and sales forces.

There is the issue of internet speed of the employee's home connection and computer security, especially since it is possible that the network is shared with family members also confined to the home.

Furthermore, how can we effectively monitor and control the activity of these traders and traders as required by law?

Banks are required to record professional communications (written and telephone) from traders, often accused by regulatory authorities of agreeing to manipulate the markets.

Penalties can be heavy if a bank does not comply.

The firms have thus taken the lead and asked for some flexibility from the American and British regulators, said the sources interviewed by AFP, confirming information from the Financial Times.

US authorities have already relaxed their rules in the past, particularly in 2012 during Hurricane Sandy.

Contacted by AFP, the gendarme of the American Stock Exchange, the SEC, and Finra, the American institution responsible for warning investors against financial fraud, did not respond immediately.

Market operators are also preparing for various scenarios.

The New York Stock Exchange, the legendary Wall Street Stock Exchange, plans to conduct a test on Saturday with its customers. "In the event that the buildings located at 11 Wall Street become inaccessible, the NYSE will continue to operate entirely electronically," said a message to brokers on Monday.

The Nasdaq, in the center of Manhattan at Times Square, also assured Monday that it has prepared emergency plans and be ready to relocate employees if necessary.

© 2020 AFP