http://www.ngfusa.com/everything_else/saturnsystemdisc.htm it says YES http://www.gamerhistory.com/forum/viewtopic.php?p=3730
Hot swapping what, exactly? The system discs are used to boot CD-Rs for testing purposes. The CD-R is burnt in the correct Saturn format. The black disc is third party, the red disc is for Sega developed games. You put in the correct system disc, which boots to the logo. You can then open the drive without the console resetting, and boot the CD without it looking for the protection ring. If that's what you mean, then yes.