Will the closure of the stock exchange reflect on the market
The coronavirus pandemic continues to spread around the world, affecting more and more countries and affecting many segments. The situation has not bypassed the U.S. and its stock market, which is considered to be in many ways decisive. Despite the fact that talks have been going on for some time, the closing of the stock exchange in New York took place just the other day. The management of the trading floor has officially announced that all transactions will now be carried out exclusively online.
Such a decision had to be taken after two brokers confirmed the disease. In this case, the management of the New York Stock Exchange has calmed all participants, announcing that the established system of online trading provides full work. All transactions are carried out in the same period as at the opening of the exchange – from 9:30 to 16:00 Eastern Time. The building on Wall Street is closed, and with it the trading floor of the Tradin Arch, which is located in San Francisco.
It should be noted that the traditional physical trading on the exchange has long ago moved to the electronic version, but the New York Stock Exchange has preserved operations with the physical presence of traders. The platform itself is located in the historic building of the business center of the metropolis. This exchange is one of the few in the U.S. where trading is possible with the direct presence of its participants, even the Nasdaq exchange, which is not inferior in importance and volume, has abandoned its traditional activities for the sake of the electronic variant. The Chicago Stock Exchange also announced the closure of the building last week.
It should be noted that in its history, the New York Marketplace has been closed several times. For the first time it happened in 1914, when the exchange was suspended for almost 3.5 months. The reason for this was the First World War. During this period, the marketplace was opened once to conduct trading with bonds, the money from which was used to cover the military expenses of the U.S. and its allies.
The second time the NYSE closed in 1963, when President John Kennedy was killed and the country was in shock and mourning.
In 2001, the exchange stopped operations for 4 days in connection with the terrorist attack on New York. Then the Muslim group “Al-Qaeda” seized passenger planes and sent them to the World Trade Center towers and the Pentagon office. About 3,000 people were killed as a result. This terrorist attack turned the world upside down and became the beginning of the global fight against terrorism.
Climatic conditions have also affected the activities of the New York Stock Exchange. In 2012, Hurricane Sandy raged over the region, resulting in the closure of the site for 2 days and many other institutions.