The New York Stock Exchange is scheduled to open at 9:30 a.m. as usual amidst criticism that the exchanges should have been better prepared in the case of disaster.
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Former SEC head Arthur Levitt and exchange and trading-firm consultant Christopher Nagy both said the disaster showed just how ill prepared the exchanges were in the case of disaster.
A back-up plan to use NYSE parent NYSE Euronext’s electronic trading system Arca was nixed late Sunday night because banks and brokerages said they had not properly tested such a mode of trading.
Shades of the electronic trading debacle involving Knight Capital Group Inc. were a factor coupled with the need to call many workers would back to work just as the storm wielded its worst.
Brokers were not sure they could trust the markets to set opening and closing stock prices.
Banks, brokerages, and exchanges continued to test a new back-up plan put together Monday morning that would shift trading to the all-electronic system.
But after weather conditions improved, the exchange announced it would open as usual on Wednesday.
The NYSE switched over to a backup power generator Monday night when Consolidated Edison Inc. shut down parts of lower Manhattan as the storm surged
. Extra fuel was delivered early Tuesday with plans to keep topping off fuel supplies as the day went on.
The Nasdaq will also open on Wednesday and the Commodities Board Options Exchange (CBOE) has, so far, given no notice that it will remain closed on Wednesday. The CBOE had said it would send out an update if the shutdown were to continue.