COVID-19

What all-electronic trading means for the New York Stock Exchange

Justin Ho Mar 23, 2020
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Spencer Platt/Getty Images
COVID-19

What all-electronic trading means for the New York Stock Exchange

Justin Ho Mar 23, 2020
Spencer Platt/Getty Images
HTML EMBED:
COPY

Starting today, the New York Stock Exchange’s trading floors are temporarily closed. Trading will continue during normal hours, but it will happen electronically. That means all those bustling traders you see on TV and in photos won’t be working on the trading floor.

The NYSE says it’s run plenty of tests and that its markets are fully capable of operating electronically. But NYSE President Stacey Cunningham says the market will be missing something.

“A computer doesn’t apply judgment quite the way people do,” she said.

For instance, when human traders meet on the floor and agree on a fair closing price, Cunningham says those prices tend to be more stable.

On their own, computers can cause prices to fluctuate.

“You want to know that when you bought or sold something, the price doesn’t rapidly change to a totally new value afterwards,” Cunningham said.

Electronic trading isn’t new. The NASDAQ is already a fully electronic exchange.

But Justin Schack at Rosenblatt Securities says the NYSE’s human traders have stepped in to stabilize markets when there have been software glitches, or during a financial crisis.

“In times of stress, it’s very important to have human beings involved and actively engaged in the trading process,” he said.

And with market volatility reaching levels we haven’t seen since 2008, Schack says, yes, this is a time when markets are stressed.

COVID-19 Economy FAQs

It’s still the question on everyone’s minds: What’s going on with extra COVID-19 unemployment benefits?

The $600-a-week payments have ended, officially, as of July 31. For now, there is no additional federal pandemic unemployment assistance. House Democrats want to renew the $600 payments. Senate Republicans have proposed giving the unemployed 70% of their most recent salary by this October, when state unemployment offices have had time to reconfigure their computer systems to do those calculations. Until then, jobless workers would just get another $200. But, nothing has been agreed upon yet.

What’s the latest on evictions?

For millions of Americans, things are looking grim. Unemployment is high, and pandemic eviction moratoriums have expired in states across the country. And as many people already know, eviction is something that can haunt a person’s life for years. For instance, getting evicted can make it hard to rent again. And that can lead to spiraling poverty.

Which retailers are requiring that people wear masks when shopping? And how are they enforcing those rules?

Walmart, Target, Lowe’s, CVS, Home Depot, Costco — they all have policies that say shoppers are required to wear a mask. When an employee confronts a customer who refuses, the interaction can spin out of control, so many of these retailers are telling their workers to not enforce these mandates. But, just having them will actually get more people to wear masks.

You can find answers to more questions on unemployment benefits and COVID-19 here.

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