Market Recovery Time

Overview

Market Recovery Time is the elapsed time required for a market or trading venue to restore reliable quoting, order handling, liquidity, and execution after a disruption or severe shock. It is an observed market-resilience measure and should not be confused with an internal system recovery time objective.

Market Recovery Time is closely connected to Payment Recovery Time Objective, Payment Full Outage, and Liquidity Depth. These concepts can appear in the same workflow, but they represent different records, decisions, controls, or stages.

Market Recovery Time can appear in the same workflow as Payment Recovery Time Objective, Payment Full Outage and Liquidity Depth, but the records should remain separately identifiable. A relationship between them does not prove that pricing, execution, settlement, custody, or accounting has completed.

For Market Recovery Time, the central operating question is whether the stated result can be reproduced from the underlying evidence. In this case, it is an observed market-resilience measure and should not be confused with an internal system recovery time objective. That evidence should remain available after corrections, later settlements, or revised market data arrive.

The supporting record should include eligible population, period, currency basis, transaction stage, exclusions, corrections, and source lineage. For this concept, the operational emphasis is also that in production, teams should define the authoritative record, identifiers, ownership, lifecycle rules, and evidence used to confirm the outcome. Reviewers should be able to trace each reported value back to the source and effective time used for the decision.

Risk review should test for changing definitions, duplicate records, mixed currencies, inconsistent cutoffs, excluded reversals, late data, and incomparable populations. Exceptions should remain open until the evidence supports closure, and any manual adjustment should record its reason, approval, and resulting financial effect.