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Former SEC Chairman Harvey Pitt on the decision to shut down the exchanges because of Hurricane Sandy.
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In focus tonight it's back to business for stocks starting tomorrow the New York Stock Exchange set to reopen after being closed for two straight days in a row for bad weather.
The first time since 1888.
So what can we expect tomorrow but that's Harvey -- Former chairman of the Securities and Exchange Commission.
Welcome back to the show it's always great to see you.
Tell -- what are you expecting tomorrow will -- -- -- lots of volume and lots of demand.
I think there will be a lot of volumes and I think they'll be a significant amount of selling pressure at the beginning of the day.
That tends to be what happens when the markets have been shut.
For.
Extraordinary circumstances.
It's what we experienced on 9/11.
We know it's interesting because -- -- only handles about 10%.
Of the overall US trading volume so ultimately they're not as important as they used to be.
They've been closed for two weeks though you still expect a lot of demand but a lot of volume that is.
But does that make a difference -- that you have all these dark pools out there -- other places the traders can ago.
That's been something -- it's has meant that the closing of the exchanges -- not have that great an impact.
Large institutions.
Can trade in these dark pool venues.
And people can trade overseas and there has been trading overseas.
So by and large there hasn't been as much of -- shut down as there once would have been.
But still there will be some selling pressure first thing in the morning.
Are able definitely watch for that I wanted to get you to respond though to comments from Arthur Levitt the former SEC chairman.
Who criticized the New York Stock Exchange for not doing more.
To stay open here's what he said people look to the New York Stock Exchange is being the symbol of American capitalism.
And to see the exchange go down for two days without an adequate backup plan is very very -- fortunate.
To see New York Stock Exchange crippled but is a body blow that will really shake the image of that institution.
For a long time to come now I should say here.
That the New York Stock Exchange saying that's not true that they do have a back -- plan of course we'd love to see it.
Hartley what do you make of his comments.
Well I understand the concern but I think in this particular circumstance it's misguided.
The reasons for shutting down the exchanges on the New York wasn't the only one that shut down.
We're simply to prevent unfairness.
To individual.
Investors.
Some people would be able to get to the marketplace other people wouldn't.
And the goal was to basically have a more orderly process shutting down on the markets particularly.
When brokers couldn't function because of the power outages.
Is not a terrible thing to have done.
-- exchange also consider trading just electronic clay would -- been a good solution.
It would but there are many people who can't access that but I do believe that having all of the markets traded electronically.
Is we're we're headed and that should've been the result here.
-- thanks for coming on tonight you're always is concerned with a level playing field as we are we appreciate your time thank you so much for coming on my pleasure.
