More Perspective on the Closing of the Trading Floor

by | Mar 24, 2020 | WWC WorthWhile Reading

In a story by Mark DeCambre and published by MarketWatch appearing Monday morning, we wanted to share the following comments, as follow-up to a question from a client raised earlier last week. She asked if closing of floor trading at the NYSE was the last straw before the crash. See our response here

The expert’s view of this event referenced Monday morning’s action as a pivotal point to watch in the exchange’s temporary removal of human traders from the floor.  

‘Georgetown’s Angel (James Angel, professor at Georgetown University and an expert in market structure) said that exchange operators have been preparing for this for a while now, but the reality of it could be the real challenge.

The NYSE has “been doing dress rehearsal for years; this will be their first performance before a live virtual audience,” Angel said. “We’ll see how the audience reacts,” he said.

The professor said that the NYSE’s floor is an important part of market structure but also said that the exchange has been largely a media center, with news organizations like CNBC and others on the floor.

“The NYSE floor’s major value is to be a media focus to the market,” he said. The NYSE understands that markets are about marketing,” he offered, adding that “when people want to understand what’s going on in the markets, they want to a see a visual presence.”’

We hope this gives some balance to what we anticipate may become a focal point for media to amplify the importance of this move. Everything is operating very smoothly for us and those we work with to manage your accounts as we expect to do going forward.

Article referenced: As the stock market is in turmoil, here’s what experts are watching for as the NYSE operates without humans for the first time