According to Reuters, the U.S. Stock Market will be closed on Monday due to interference that will be caused by the logistical nightmare that comes along with such a huge weather event like Hurricane Sandy. Parts of New York City have already been evacuated.
As early as six hours ago, it was said that the NYSE would not be closing down, but that decision has apparently been reversed as the severity of the storm has picked up. Additionally, the NASDAQ will be closed, a decision made in concert with the NYSE.
Clearly, safety is a priority in this situation, as the company stated tonight:
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.
MSNBC is also reporting on the shutdown:
Here are the directions on how trading will occur while the shutdown is in effect:
As previously posted, the New York Stock Exchange will enact its contingency trading plan for Monday’s trading session, October 29, 2012.
All NYSE-listed securities will trade on NYSE Arca, our fully electronic exchange, from 4 a.m. though 8 p.m. ET. In this scenario, pursuant to NYSE Rule 49 and NYSE Arca Equities Rule 2.100, NYSE-listed trades will be identified on the Consolidated Tape with the NYSE exchange designation ‘N’, and quotes will be identified as NYSE quotes on the Consolidated Quote stream. During such a contingency plan, NYSE member organizations will be permitted to enter orders in NYSE-listed securities directly on NYSE Arca, even if not approved as an NYSE Arca ETP Holder. Details can be found at the “Print as N” link below.
While trading at NYSE MKT will not occur during this time,NYSE MKT member organizations that are also Arca ETP Holders may send orders in NYSE MKT-listed securities to NYSE Arca. Quotes and executions in Tape B and Tape C securities on NYSE Arca will continue to be reported as ‘P’ and there will not be a primary print for NYSE MKT-listed securities.
Since trading will still be open electronically, it will be interesting to see what this event does to the market as a whole, good or bad. Even though the closings are slated for Monday only, it could be expanded depending on the severity of Hurricane Sandy.
The last time that the NYSE was shut down like this was on 9/11, but this isn’t the first weather related decision:
Here is a full list of NYSE closings, dating back to its beginning.