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In one of the rarest occasions, the New York Stock Exchange and Nasdaq are to halt trading today, for the first time in 27 years in the case of NYSE, as Manhattan, the US’ financial centre, and the rest of the State of New York prepare for the impact of Hurricane Sandy.
NYSE Euronext, operator of financial markets where about a third of the world’s traded equities, decided to shut the operations down today and possibly on Tuesday, after consulting with other exchanges and market participants, according to the company.
The decision is a revision of yesterday’s announcement where NYSE said it will only close its physical trading floor in Manhattan but will continue to trade electronically by initiating its contingency plan.
However, acting in respect to the New York City Government and the State of New York, which declared a state of emergency for their constituents, NYSE issued another statement today informing that no trading will be conducted today and further announcement will be made for tomorrow’s trading status.
“We support the consensus of the markets and the regulatory community that the dangerous conditions developing as a result of Hurricane Sandy will make it extremely difficult to ensure the safety of our people and communities, and safety must be our first priority,” NYSE said.
“We will work with the industry to determine the next steps in restoring trading as soon as the situation permits.”
Nasdaq also issued a statement saying it will close trading today following “consultation with other US Exchanges, government officials and regulators” including the Securities and Exchange Commission, as quoted by the BBC.
The US National Weather Service’s latest update on Hurricane Sandy as at 5:00 AM EDT, stated it continues to strengthen and is expected to bring “life-threatening storm surge, coastal hurricane winds and heavy Appalachian snows”.
The transport system in New York has been suspended and orders of evacuating were released in anticipation of the hurricane. Airline flights have been cancelled in view of the possible dangers.
NYSE last closed trading was in 1985 when Hurricane Gloria hit the same region and wrought damage worth US$900 million at that time.
