The U.S. government as well as other governments are working round the clock to contain the virus. However, nobody knows for sure, for how long the pandemic will continue to spread around the world. In this situation, stock exchanges face a dilemma. On the one hand, they want to protect their employees as well as traders. On the other hand, by closing trading floors they will create certain problems for traders.
Two days ago, New York Stock Exchange (NYSE) announced that it will temporarily close its trading floor. As a result, NYSE will move fully to electronic trading starting from March 23.
It is worth mentioning that NYSE is not the first stock exchange to close its trading door as CME group made a similar decision. Last week, the group closed its Chicago trading floor as a precautionary measure.
This is a historic moment, as for the first time the physical trading floor will stop working while electronic trading continues, at the NYSE.
Exchanges in New York and Chicago made the right decision.
Let’s have a look at the facilities affected by this decision. The list is quite impressive. NYSE equities trading floor as well as NYSE American Options trading floor in New York.
NYSE Arca Options trading floor in San Francisco will be closed from next week.
Stock exchanges and their owners
One of the best solutions is to embrace electronic trading, and stock exchanges in New York are actively working in this direction.
Major U.S. stock exchange Nasdaq, does not operate a physical trading floor.
As a reminder, Electronic trading group Intercontinental Exchange acquired the NYSE in 2012.
Over the time electronic trading grew on Wall Street, and NYSE adapted to the reality.
Nevertheless, the physical trading floor is an integral part of the New York Stock Exchange, especially at a time when trading starts as well when trading comes to an end
Interestingly, the stock exchange operates from its building at Broad St. in Lower Manhattan from 1903.