r-OB-04 12:20pm From-

Robart T. Zito To: ebrown@nyse.com

03/08/2004 10:28 AM Subjetf :" RE: Marke, closure Time-line

cb: pp./bob
--- Forwarded by Robert T. Zito/Corp/NYSE on 03/08/2004 10:29 AM -

"Emily Walker" To; <rzito@nyse.com>

<ewalker@9-11commi ex: "Mark Bittinger" <mbittinger@9-11comrnission.gov>
ssion.gov> Subject: RE: Market Closure Time-line
03/08/2004 10: 18 AM

Bob: Attached is a draft of the market closure timeline. Harvey Pitt

has reviewed. I would appreciate it if you had the time to review and
make any corrections or additions. The full story is longer. Please
fax back any handwritten changes to the document to 212-264-1595.
Thanks so much.
EMILY WALKER

Market Closure Timeline 030504.

Mar-08-04 12:20pm From-

MARKET CLOSURE AND REOPENING

TIMELINE

Tuesday, Sept. 11, 2001

8:46 a-m. First Plane hits North Tower of the World Trade Center (WTC)

8:50 a-m. Lisa Panasitti, Deputy Chief of Staff to SEC Chairman Harvey Pin, rushes into his
office to tell him a plane has hit the WTC. Harvey Pitt aad SEC staff watch the developments
on TV in Panasitri's office.

.
8:50 a.m. Boi^gg>, (TleaJ-Aubiit ReUuum NYSH) calls Dick Grasso (Chairman, NYSE)
at a breakfast meeting and tells htm a plane hit the WTC fefcr^b he sawrhrough his-nnrudow
and h^d lunfimiud un lelf vision stU' ill hiiTbffcej. Grasso decides to evacuate his NYSE
employees from the South Tower and they immediately did because of their memories of
19931. NYSE had 140 people working on floors 28-30 of me South Tower.2 Grasso calls
Harvey Pitt to delay opening of Stock Exchange.3

T "V, .
Harvey Pitt agrees with Grasso that NYSE opening should be delayed, asks if it, can open at
all. Pitt asks senior SEC Staff- David Becker, SEC General Counsel; Annette Nazareth,
Director of SEC Division of Market Regulation: Mark Radke, Chairman's Chief of Staff, to
come to his office to discuss implications of deky of NYSE opening and impact on other
marketplaces.

Harvey Pitt calls Wick Simmons at Nasdaq to discuss market closure and postpones trip to
New York, (Wick says he called Harvey). Sal Sodano calls Dick Grasso and suggests that
the market close. Grasso is calling for delay. Sodano calls SEC and says that he cannot open.
SEC asks for confirmation from other markets.

1 Robert T. Zito (Executive Vice President of Communications, New Yodc Stock Exchaugt), icterviev by Emily L. Walker and
Saci Caspersai, December 11,2003, Nevr York, NY.
z "Spirit of America", Nevatek, September..., 2001,
3 Robert T. Zilo (Executive Vice President of Communicatiojii-, New York Stock Exchange), interview by Emily L. Walker and
Sam Caspetscn, December 11,2003, New York, NY.; Interview with Dick Gtasxo. 12/11/03.
•tfar-08-04 12:21pm From-

9:03 a.m. Second plane hits South Tower of the WTC.

9:10 — 9:30 a.m. Sal Sodano speaks to Grasso and says he must close Amex Grasso calls Pitt
to recommend closing the markets.'' Sodano did not evacuate. Grasso stayed in NYSE.
Simmons had to evacuate and found communications in Prudential offices several blocks
away. Grasso spoke with Mayor Giuliani, and several CEO's of financial market firms.

9:30 axn. NYSE, Amex and Nasdaq do not open. Trading brought
^F*^"
down
—-^^—
in an orderly £r~
fashion.5

9:30 a.m. SEC issues a press release., the text of which follows.

FOR IMMEDIATE RELEASE 2001-90

STATEMENT BY SEC CHAIRMAN HARVEY L. PITT

Washington, D.C. September 11, 2001 - Today Chairman

Harvey L. Pitt issued the following statement:
The Commission has been, and is, in constant
communication with each of our organized securities
markets and exchanges. As a safety precaution while
the tragic events of today are sorted out, the
securities markets have decided not to open for trading
today. We -strongly support that decision; it is a
responsible course of action in light of the current
situation. We are continuing to monitor the situation,
along with the securities markets, and investors should
be assured that the disruption to normal trading
patterns is a temporary phenomenon; trading will resume
as soon as it is practicable to do so. We will keep
the public advised.
# # #

9:43 a.m. Pentagon hit by American Airlines Flight 77. 1" i

vP|
9:45 a.m. SEC and senior staff contact all options exchanges and commence continuous
dialogue with all market centers, electronic communications networks, and regulatory agencies
overseas.

•'Interview widi Robert T.Ziio, 12/11/03; Interview \virh Dick Grasso 12/11/03; Interview with Harvey L. Pitt 12/18/03

$ Harvey L. Pitt (fooncr Chairman, U.S. Securities and Excluuigc Commission), interview by Emily L. WaJfcer and Mark S.
Bictingcr, December 18,2003, Washington, DC.
Mar-08-04 12:21pm From-

10:05 a.m. South Tower Collapses.6

10:28 a.m. North Tower Collapses.

10:30 a.m. SEC Chairman Pitt releases all non-essential SEC personnel, and sends them
home, especially all personnel in the New York City office. The official senior SEC working
team of Pitt, Radke, Panasitci, Becker, Nazareth, Bob Colby (Deputy Director of the SECs
Division of Market Regulation) are all working on contingency plans, and talking to all of the
markets.

11:15 — 11:30 a.m. Grasso speaks to Mayor Giuliani and Governor Pataki and decides it is
safe to let people out of the building. NYSE sends some employees home. Senior
management stays. Grasso lives at NYSE for 3 days.7 Sal Sodano in Amex felt both towers
collapsing. Significant damage to Amex building. Simmons has set up offices in TrumbulJ,
Connecticut^ Nasdaq headquarters.

ll:30aum. - 4:00 p.m. SEC checking with all market centers on state of affairs. Constant
communications with President's Working Group on Financial Markets, members included —
Roger Ferguson, Vice Chair of Fed; Peter Fischer, (Jndersecretary of Treasury; Jim Newsome,
Chairman, CFTQ and Harvey Pin; Chairman of SEC- Various staff conferences during the
entire period.

4:00 p.m. Agreement reached that markets should stay closed at least another day.

4:25 p.m. NYSES Amex and Nasdaq announce they will remain closed on Wednesday, Sept
12, 2001. Connectivity to members is cited as the major problem with reopening (in addition
to recovery efforts that are underway in the area).8

6 "Ready for .Anything? Businesses are re-evaluiition their conlingcncy plans. Some have a lot of work to do.", John Foley,
24 September, 2001.

1 Robert T. Zito (Executive Vice President of Communicadoas, New Yodc Stock Exchange), interview by Emily L, Walker and
Sam Caspersd\r 11, 2003, New York, NY.
8 NYSE.com/press
Mar-OB-04 12:21pm From-

5:20 p.m. Building 7 of the WTC collapses causing damage to Venzon building at 140 West
Street and knocking out over Vz cables from that she as well as crushing the underground vault
where many of the cables were spliced into the switching systems.'

5:30 p.m. SEC announces loss of ins Northeast Regional Office (at 7 World Trade Center).
Pitt checks with Wayne Carlin, head of NY Office regarding all personnel. Efforts made to
ascertain whether anyone lost in collapse. Later that evening, Pitt learns all personnel left
building or were otherwise away from the area. One examiner was in second building, but
escaped before it collapsed. Pitt speaks to her at around 10 p.m. She indicates she got home
at 4:30 p.m., showered, and spent the rest of the day in church.

AH day: Representatives of President's Working Group on Financial Markets in conference

calls10

11:59 p.m. Pitt advises Grasso that he intends to travel to NYC on Wednesday morning, to
meet with exchange officials, others involved in rescue efforts., and to talk to the heads of the
major brokerage firms. Pitt asks Grasso to collaborate with Wick Simmons on convening a
meeting in the early afternoon of all major brokerage firms, American Exchange^
representatives of the Mayor's and Governor's offices, Con Ed and Verizon. Grasso agrees to
set the meeting up for 2:00 p.m.

Wednesday, Sept. 12, 2001

6:30 a,m. Harvey Pitt receives call from Larry Lindsey (White House Economic Advisor) and
explains the situation. Pitt tells Lindsey of his nip to NYC, and the issues the SEC is
considering. SEC team considers regulatory actions that could enhance market preparedness
upon reopening.11

* "The Verizon Semes Standard", Oec. 11, 2001 Issue No. 4

10 Peter R, FL«b.cr (former Under Secretary of lie Treasury for Domestic Finance), interview by Emily L. Walker and Gcolfay
Brown, December 1 1, 2003, New York, NY.

L. Pitt (former Chairman, U.S. Securities and Exchange Commission), interview by Emily L. Walker and Mark S.
Bit-linger, December 18, 2003, Washington, DC.
Mar-OB-04 12:21pm From-

7:00 a.m. Harvey Pitt interviewed on Good Morning America regarding the state of the market.
Essential purpose is to give reassurance to investors that market dislocations are temporary.
Pitt calls Peter Fisher, to tell him he is going to NYQ and Fisher asks to come along wiiii him.
Pitt agrees, and, then departs for NYC with Peter Fisher (Undersecretary of the Treasury for
Domestic Finance)12 Also traveling to NYC with Pitt arc Nazareth, Becker, Radke, and
Panasitti of SEC staff. Travel is by Amoak, since Reagan National Airport is closed.

2:00 p.m. SEC-called meeting of market representatives at Bear Stearns., NYC to take stock
of situation. Participants included Chairman Grass o of NYSE, Chairman Wicks of Nasdaq,
Chairman Sodano of Amex, Chairman Pin of SEC, Undersecretary of the Treasury Fisher,
representatives of the mayor's office and governor's office, and representatives from NY
SEMA, FEMA, Verizon, ConEdison, NYPD, FDNY, and market players.13 Pitt opens the
meeting, indicating its purpose - fact finding, and to assist in making a decision whether and
when to reopen die markets. After thoroughly listening to everyone, the decision is taken ro
keep all the equity and options markets closed on Thursday, and to reevaluate the situation the
next day. A meeting was scheduled for 2 p.m. on Thursday at Credit Suisse First Boston
(CSFB) with the same participants as attended the Wednesday meeting. Pitt had arranged for a
press conference to be held immediately after the meeting concluded at Bear Steams' offices.
Pitt announced the decision mat had been reached to the press, and then Pitt, Grasso,
Simmons and Fisher took questions from die press.

Thursday, Sept. 13, 2001

9:30 a-m. Treasury bond markets open with light trading absent stock market activity.1"
Market closed at 2 p.m. and trade processing was extended from one day to five days.15

12 Harvey L. Pitt (former Chairman, U.S. Securities and Exchange Commission), interview by Emily L Walker and Mark. S.
Bictinger, December 78, 2003, Washington, DC.

L. Pitt (Jaroiw CluiirniMj, U.S. Securities and Exchange Commission), inrerciew by Emily L. Walker and Mark S.
Bieriager, December 18, 2003, Washington, DC.; interview with Dick Grasso 12/11/03; Interview with Peter Fischer
12/11/03 and edicts.

14 Dow Jones <5c Reuters, 9/16/01 Chicago Tribime, Boll Batniiart "NYSE, Nasdaq ready lo teopiai smooch trading is primary
goal".

15 Knaacial Times,, September 22, 2001, "Down but not out in New York"
Mar-08-04 12:21pm From-

9:30 a.rn. Pitt, Radke and Panasitti travel to NYSE to meet with Grasso, Verizon, Con-Edison
and others in advance of afternoon meeting at CSFB. Pitt and Grasso leam that rescue efforts
are ongoing and would be hampered by reopening of markets. Also learn that full telephone
service cannot be restored in time for a Friday opening. Pitt indicates support for Monday
opening, assuming it can be undertaken with complete confidence. Grasso agrees.

P.M. Meeting at CSFB with same participants as previous day. Again, a thorough review of
the progress of rescue efforts., repair of telephone and electricaJ facilities, and the feasibility of
reopening the markets. The decision was taken to open markets on Monday, Sept 17, 2001,
following testing of capabilities over the weekend.16 Announcement made at press conference
that market will reopen on Monday Sept. 17, 2001.17

Harvey Pitt and Peter Fisher return to Washington, D.C-

Friday, Sept. 14, 2001

P.M. Securities and Exchange Commission announces regulatory relief18 stemming from
emergency powers granted in 1987 but never previously utilized19

Weekend Sept 15-16, 2001

Testing conducted on all systems. Space made available for Amex at NYSE due to building
damage. SEC staff on-site to evaluate testing.20

Monday, Sept. 17, 2001

9:30 a.m. NYSE Market reopens after 2 minutes of silence. Present at opening: Chairman
and CEO NYSE Dick Grasso; Nasdaq CEO Hardwick Simmons; Secretary of the Treasury
Paul O'Neill; Chairman SEC Harvey Pitt; Governor of New York George Pataki; Mayor of

it Interview \tith Grasso, Pin^ Fischer and Zito confirmed this decision. Announced co press on same day.
" Tiipe of Bear Steams Press Conference

18 Must gcc Regulatory Relief announcement fora SEC

" Harroy L. Pitt (fanner Chairman, U.S. Securhies and Exchange Commission), interview by Emily L Walker and Mark S.
Bircingcr., December 18,2003, Washington, DC.
1° Ibid
Mar-08-04 12:Z1pn From- T-353 P.008/008 F-332

21 Press rcpons