What is Going on at the NYSE?
- Posted by Greg Harmon
- on November 13th, 2012
Two weeks ago the NYSE, $NYX, closed due to the ravages of Hurricane Sandy. While I had no sick desire to place employees in harms way to open the exchange, it raised serious questions about Disaster planning, some of which I discussed in Sandy, the NYSE or the Wussification of America. Could it really be that the Exchange NEEDED to have all the specialists in to push a button and open every stock manually? Was there no way to trade electronically, like NASDAQ does all the time? This is what CEO Duncan Neiderauer told us. Since then it has blown over and been forgotten. In fact the snapshot of the front page of their website above is touting their new television ad schedule. All is forgotten. Forward. Until Monday November 12.
Monday revealed a big hole in this story when 216 stocks did not trade on the NYSE due to a problem with their Universal Trading Platform matching engine. What happened? A computer glitch that they say was found and will be repaired before Tuesday’s open. The result? Nobody noticed. Orders went to other exchanges and nobody trading even cared about the technical issue. Hmm, seems there is a way to trade stocks without people at the Exchange floor. The notice above was not even on the front page of their website but buried a few clicks deep.
Hey Duncan, can we get a new statement now? Maybe you meant the machines can’t work by themselves when it is raining? Is that what it? Or maybe you have your priorities in the wrong place focusing on your ad campaign and not understanding how your systems work.
I can’t wait until the Congressional hearings and the SEC Investigations get to the bottom of this. Oh wait, that will not happen. Not in this world. I guess I should just say congratulations Duncan! Congratulations for succeeding to pull the wool over everyone’s eyes again. Forward.
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Gregory W. Harmon CMT, CFA, has traded in the Securities markets since 1986. He has held senior positions including Head of Global Trading, Head of Product Development, Head of Strategy and Director of Equity. (More)
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