Which is a correct statement about emergency planning by the exchange?

Emergency planning by the exchange is indeed an ongoing obligation. This means that exchanges continuously update and enhance their emergency response strategies to ensure they can effectively handle various crises or disruptions. Such preparedness is essential to maintain market integrity, protect investors, and ensure that trading can be conducted as smoothly as possible in the face of unexpected events.

The rationale behind this ongoing requirement is rooted in the necessity for the exchange to adapt to changing market conditions and potential risks. Regular updates and training ensure that all involved parties, including exchanges, brokers, and traders, are well-prepared for a wide range of scenarios. This proactive approach is critical for maintaining confidence in the financial system and mitigating the impact of emergencies on trading operations.

In this context, the other options do not capture the comprehensive nature of emergency planning. It is not limited to specific situations, nor is it optional for any market participant, regardless of size. While trader involvement is important, the primary obligation rests with the exchange to maintain and update its emergency plans actively.