The exchange will move to fully electronic trading.
(Updated 5:30 p.m. ET, March 18, 2020)
Topline: The New York Stock Exchange will temporarily close its trading floor and move to fully electronic trading, the exchange announced on Wednesday, in response to the coronavirus outbreak; the move comes as investor fears and business disruptions caused by the virus continue to take an immense toll on markets.
- “The decision to temporarily close the trading floors represents a precautionary step to protect the health and well-being of employees and the floor community in response to COVID-19,” the exchange says.
- The NYSE equities trading floor in New York will close, along with the NYSE American Options trading floor in New York and the NYSE Arca Options trading floor in San Francisco.
- Trading securities will continue without interruption, the NYSE said, and full electronic trading will begin on Monday, March 23.
- According to reporting by CNBC, the closure was in part prompted by a NYSE employee testing positive for the coronavirus; NYSE did not immediately return a request for confirmation.
- At the close of markets on Wednesday afternoon, the Dow Jones Industrial Average was down dropped 6.3%, nearly 2,000 points.
Crucial quote: “Can’t help but think its the end of an era,” tweeted RSM U.S. LLP chief economist Joseph Brusuelas.
Key background: According to New York Stock Exchange president Stacy Cunningham, a complete shut down of the market is not likely. “Closing the markets would not change the underlying causes of the market decline, would remove transparency into investor sentiment, and reduce investors’ access to their money,” she said in a statement yesterday. “This would only further compound the current market anxiety.” This afternoon, she added: “We continue to firmly believe the markets should remain open and accessible to investors.” Treasury Secretary Steve Mnuchin has said Wall Street is committed to keeping markets open, but that a reduction in trading hours is possible.
