NYSE Ready to Test Fresh Contingency Plan
The stock exchange operators of United States are all set to test a fresh contingency plan today to ascertain restarts of domestic equity trading this week.
The officials of NYSE Euro next also sacked statements that the floods had affected its headquarters situated in lower Manhattan; however, they stated that in case the building and its trading floor suffered irreparable damage, they had a backup plan ready.
The exchange officials issued a notice to the traders stressing the fact that there hadn’t been any damage at the time to NYSE Euro next headquarters in New York City that would harm the operations of the trading floor.
They referred to the contingency plan as ‘precautionary’, owing to the impulsiveness of the storm that had already flooded few parts of the city.
The plan that was sketched by NYSE and competitor exchanges groups Direct Edge Holdings LLC and BATS Global Markets Inc. on Monday night would see the all electronic NYSE Arca platform of Big Board operator manage the vital opening as well as closing auctions.
The stock exchange of New York and the trivial NYSE MKT exchange would stay shut down according to the plan that is being discussed.
This plan moves away from a proposal put forward by NYSE Euro next on Sunday, which entailed operating the stock exchange of New York by making use of Arca’s systems. This attracted the concerns from the brokerage officials who were bothered that they were not prepared properly for the untraditional approach.
As per the plan that was sketched late on Monday, all trading in the securities listed by NYSE would be carried out on Arca exchange, as stated in the notice issued by NYSE Euro next.
The exchange officials, in the notice, stated that NYSE Arca had to be considered as the main market in this situation. Specific orders would not be able to be utilized in the situation and exchange operator cautioned members that there was no assurance that regulatory relief would be granted even though it was being sought from few trading rules.
Direct Edge, BATS, and NYSE planned to organize a test across the market on Tuesday, with trading and auctions to be held in “test symbols.”