On Wednesday, the New York Stock Exchange (NYSE) said it will temporarily close its trading floor. The world-famous stock exchange will switch to fully electronic trading in several days. As a result, all-electronic trading will begin on Monday at the open, based on the information provided by the NYSE.
For the first time in the history of NYSE, the physical trading floor will stop working while electronic trading continues, it is an unusual moment. However, it is not the first time when the New York Stock Exchange has had to close its trading floor.
For example, the stock exchange was closed during World War Two, the most recently during Superstorm Sandy in 2012.
Traders, as well as other people who work or visit the stock exchange, should modify their plans. Let’s have a look at the facilities affected by this decision. NYSE equities trading floor as well as the NYSE American Options trading floor in New York. Moreover, the NYSE Arca Options trading floor in San Francisco will be closed from next week.
The history of the New York Stock Exchange
Electronic trading group Intercontinental Exchange operates the New York Stock Exchange. In 2012, Intercontinental Exchange acquired the NYSE.
Interestingly, the stock exchange operates from its building at Broad St. in Lower Manhattan from 1903.
It is important to note that electronic trading grew on Wall Street, and NYSE adapted to new reality. Consequently, the dependence on the physical trading floor decreased over time.
Nevertheless, the physical trading floor is an integral part of the New York Stock Exchange. It plays an important role at the open and closing of trading.
For example, another major U.S. stock exchange Nasdaq does not operate a physical trading floor.
Another stock exchange also made a decision to close its trading floor. Last week, CME Group closed its Chicago trading floor as a precautionary measure.