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1 1 (July 02, 2020)

handle is hein.crs/govdati0001 and id is 1 raw text is: Researh Sevice The Closing of the New York Stock Exchange's Trading Floor Due to COVID-19 July 2, 2020 The New York Stock Exchange (NYSE) is a major secondary market trading venue for corporate stocks. On March 18, 2020, the exchange's parent company, the Intercontinental Exchange Incorporated, announced that after several of the exchange's employees tested positive for Coronavirus Disease 2019 (COVID-19), it was taking the precaution of temporarily closing its iconic and densely packed human trading floor. In advance of the closure, the Securities and Exchange Commission (SEC), the principal regulator of domestic stock exchanges, granted its approval. On May 26, the exchange reopened the floor after the imposition of health-related requirements, including limiting the number of traders to a fraction of its former size, mandatory masks, a directive to avoid public transportation, entrance to the exchange conditioned on temperature testing, and social-distancing facilitated by plexiglass barriers. In addition, floor traders must reportedly sign a liability waiver that prevents them from suing the NYSE, if they get infected there. This Insight examines the closure, its impact, and its potential implications for the trading floor's future. The NYSE and the Trading Floor Trading several billion shares daily, the NYSE, which dates to the 18h century, ranks second to the Nasdaq Stock Exchange in trading volume among global stock exchanges. Decades ago, the trading floor was where all of the exchange's trades were conducted. More recently, the NYSE adopted a hybrid electronic and human trading model, with electronic trading becoming more and more prevalent. Immediately prior to the COVID-19 pandemic, about 80% of the trading volume was done electronically. With the temporary closure, the exchange became 100% electronic. The exchange conducts initial public offerings and trades the shares of companies that it lists as well as those that are listed on other exchanges like the Nasdaq. NYSE-listed firms include legacy blue chip companies such as Coca Cola, Pfizer, Diebold, Procter & Gamble, General Motors, Boeing, Johnson & Johnson, and IBM. An anomaly among the other entirely electronic modem stock exchanges, the NYSE's trading floor is manned by floor brokers and designated market makers (DMMs). DMMs, formerly called specialists, are obligated to maintain fair and orderly markets in their assigned stocks. Operating both manually and electronically, they facilitate price discovery-the determination of Congressional Research Service https://crsreports.congress.gov IN11447 CF'S NStGHT Prepaimed for Mernbei-s and Committees 4 o. C- --q .. . . . . . . . ...----------------------------------------------------------------------------------------------------------------------------------------------------------------------

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