Hurricane Sandy Forces Wall Street Trading Closure

Nichole Harper
29 Oct, 2012
New York City

Financial markets in New York were closed today after Hurricane Sandy gathered storm and regulators and government officials prepare for one of the worst storms in decades.

Financial markets in New York were closed today after Hurricane Sandy gathered storm and regulators and government officials prepare for one of the worst storms in decades.

The late night decision announced by the Securities and Exchange Commission may extend the market closure to tomorrow.

The Securities Industry and Financial Markets Association, Sifma, said in a statement that it recommended bond trading to close at noon Monday.

The financial markets were closed for the first time in three decades when Hurricane Gloria shuttered the New York City and markets on September 27, 1985.

However, market opening has been delayed several times during the snow blizzard in 1996 and were closed for three days after the World Trade Center were attacked by terrorists on September 11, 2011.

CME Group Inc said it will close interest-rate trading at noon New York time as recommended by the industry association.

The Nasdaq and BATS exchanges that operate on electronic trading also decided to close for the day and may reopen on tomorrow.

Hurricane Sandy is expected pound the New York City and the surrounding areas with rains and most Southern New Jersey is facing flood waters on heavy rains.

The huge storm has been gathering speed and strength and sustained winds have picked up to 90 miles per hour by 11 a.m. from 75 miles per hour on late Sunday.

The storm is expected to make a landfall on Monday night somewhere between central New Jersey and southern region of Delaware.

New York Stock Exchange operates its data center in Mahwah, New Jersey which processes all trades and is designed to withstand storms stronger than Hurricane Sandy and has backup generators with fuel enough to run for a week.

Goldman Sachs said their Lower Manhattan office will be closed and staff members will operate from locations in Greenwich, Connecticut and Princeton, New Jersey and trading for financial products diverted to European locations.

JP Morgan Chase shuttered its offices in Lower Manhattan that may face flooding and Citigroup plans to close branches in areas that are affected by rain and wind.

Total damage from the Hurricane Sandy is expected to exceed $6 billion.