Financial institutions in New York stepped up security measures during the past two weeks to guard against possible terrorist attacks.

There were two reasons for the enhanced security measures in New York. The Republican Party will hold a national convention late this month while international terrorists said they would target some American financial institutions for future attacks.

On Aug. 1, Homeland Security Secretary Tom Ridge raised the terrorist threat level in some financial centers in Washington, New York City and northern New Jersey, saying intelligence from "multiple reporting streams" was "alarming in both the amount and specificity of the information."

Known as "capital of global finance", New York City is home of many famous American and international financial institutions suchas the New York Stock Exchange (NYSE), the American Stock Exchange(Amex), the New York Mercantile Exchange (Nymex), the Federal Reserve Bank of New York, Merrill Lynch, Goldman Sachs, Deutsche Bank, JP Morgan Chase & Co. and Brown Brothers Harriman & Co.

Besides causing human casualties, possible terrorist attack on these financial institutions could completely paralyze the world financial markets, as an average 1.4 billion shares are traded in the NYSE every day and more than 130 billion dollars worth gold bullion are stored in the Federal Reserve Bank, only two blocks away from the NYSE.

Actually, New York's financial institutions have taken various measures to improve security conditions since the Sept. 11, 2001 terrorist attacks.

Firstly, many financial institutions in the city have set up backup systems in neighboring areas to decentralize their business.

Morgan Stanley Inc., for example, has established backup trading facilities in Worchest, New York. Goldman Sachs Group Inc.has built a new office complex with at least two trading floors inJersey City, New Jersey.

The Nasdaq market has set up data processing centers and business backup utilities in Connecticut and Maryland, and Deutsche Bank and Lehman Brothers have improved their communications and business backup systems in New Jersey and otherstates.

Secondly, many financial institutions have worked out emergencyplans. The Nasdaq market told traders that it could use its back up utilities in other states to execute the trading of all 6,679 shares listed on the market if its headquarters in Time Square was attacked by terrorists.

A high-rank executive at Nasdaq said that these backup utilities, which include two brand-new generators in Connecticut that could provide enough electricity supply for more than a week,were very powerful. The New York Stock Exchange (NYSE) has also set up separate backup systems outside of Manhattan district.

Thirdly, major financial institutions have strengthened security systems. The NYSE was closed to public tour for more thantwo years, and impromptu visitors must go through strict security examination before entering the trading floor.

Electronic checking systems were widely used in many investmentbanks, which monitor all visitors' activities inside the buildings.Some banks asked the employees to show their photo ID or special pass before entering office buildings. Many financial institution shave recruited more experienced security personnel.

Immediately after the Aug. 1 warning, police sealed off some streets near the Citigroup Center building and the NYSE in New York. They reinforced manpower at the International Monetary Fundand World Bank buildings in Washington through extra security checks. More barricades were set up in major streets, and Prudential Financial Inc.'s headquarters in Newark was heavily guarded.

However, since Ridge's announcement, the administration of President George W. Bush has discovered no evidence of imminent plans by terrorists to attack US buildings, a White House official acknowledged last Thursday.

Source: Xinhua