back to business
U.S. markets opened this morning after halting trading on Monday and Tuesday due to the raging storm.
At the Nasdaq, Times Square Alliance President Tim Tompkins was scheduled to ring the opening bell, signaling the resumption of business as usual—we hope. The New York Stock Exchange, which hadn’t closed for two consecutive days due to weather since 1888, was also set to open.
“Our building and systems were not damaged and our people have been working diligently to ensure that we have a smooth opening,” NYSE Euronext CEO Duncan Niederauer said in a statement.
But good intentions are no guarantee of positive results. The Times reported yesterday that the New York Stock Exchange was experiencing “connectivity problems,” while the Journal reported criticisms of the exchanges inadequate preparations for extreme events such as severe weather or terrorist attacks.
The New York Stock Exchange will be closed again tomorrow, according to a press release posted on the NYSE Euronext website.
As previously reported, the exchange initially planned to close its physical trading floor and open on electronic systems as Hurricane Sandy battered New York City today. That decision was reversed late last night. Minutes ago, the exchange said it would remain closed tomorrow, along with other U.S. markets:
In the end, U.S. stock markets decided to heed the storm.
The New York Stock Exchange had planned to open trading electronically while shuttering its physical trading floor. “We are open for business and at the same time acting in accordance with actions taken by the city and state of New York,” said NYSE CEO Duncan L. Niederauer said in a release yesterday afternoon.
But NYSE reversed course last night, announcing it would halt operations completely. The exchange is closed today, and may close tomorrow, “pending confirmation,” according to a release.
Nasdaq is also closed today; “it is likely that the markets will be closed” tomorrow, the exchange said in a release.
Bond markets will open, but the Securities Industry and Financial Markets Association recommended that markets close at noon today.
So the buck stops … here? After technical glitches at Nasdaq on the day of Facebook’s initial public offering cost market makers millions of dollars, a pattern emerged. Nasdaq would offer to make good on some part of the losses, the market makers would grumble that said offer was unsatisfactory, and Nasdaq would come back with something a little bit better.
European Central Bank President Mario Draghi won wide support from his board for a plan to buy the sovereign debt of euro zone countries. Rates on Spanish 10-year bonds promptly fell to levels last seen in May, and the corresponding Italian bond fell to its lowest since April.
LightSquared, the wireless broadband company backed by Harbinger Capital founder Phil Falcone, is battling with creditors over control of the firm’s bankruptcy, according to Bloomberg. LightSquared has asked a judge to extend a deadline to file a Chapter 11 plan; the creditors say, “Having nothing to lose, Mr. Falcone wants to pursue a high-risk, high-return strategy.”
Nasdaq may be planning to sweeten its compensation offer to entities that suffered losses due to technical problems at the exchange on the day of Facebook’s initial public offering, The New York Post reports, which would fit the pattern: Nasdaq makes an offer, the market makers—Citigroup, UBS, Citadel and Knight—talk tough, Nasdaq ups Read More
Citigroup says it gave Nasdaq a chance to make good on the botched Facebook IPO that cost market makers hundreds of millions of dollars. Now Citi has run out of patience, blasting the exchange in a 17-page letter to the Securities and Exchange Commission. “As set forth in detail below, the hundreds of Read More
Faceplant: UBS saw profit fall 58 percent in the second quarter. The firm wasn’t helped by a $356 million loss connected to Facebook’s initial public offering, in which technical glitches at Nasdaq caused UBS to buy more shares than its clients had ordered. “We will take appropriate legal action against Nasdaq to address Read More
Libor arrests: U.S. and European regulators are on the verge of arresting traders believed to have manipulated Libor and other interbank lending rates, Reuters reports. The arrests, and criminal prosecutions or plea agreements to follow, are largely separate from enforcement actions regulators are pursuing against individual banks.
Soft tactics: The Federal Reserve Bank Read More
Whither Europe: The U.K. will inject $155 billion into the nation’s banking system in a move to head off ill effects of Greek elections on Sunday. That news comes after an unnamed G-20 official told Reuters yesterday that the world’s central bankers are ready to provide liquidity if the elections upset markets.
Niall Read More