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Why the NYSE Had to Close for Sandy

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  • Description

    FBN's Charlie Gasparino says NYSE didn’t test the full Arca trading system before Sandy.

  • Duration 4:19
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This transcript is automatically generated

-- -- -- The plots.

Thickens over why the New York Stock Exchange really decided to halt trading Monday and Tuesday and it may have less to do with -- -- -- than you might thank.

Nobody has been doing a better job on the story that -- Charlie Gasparino he's joining us now with the latest exclusive details of why -- we do a story like this means that we -- We -- try to be Monday Morning Quarterback but there is a public service here.

The markets I believe -- to be open you know at some point need to deal with without people arms way.

And firms and exchanges need contingency plan so I'm just gonna -- and they obviously didn't prevent or at least a good enough once.

That's -- they -- a closed Monday and Tuesday where the value of corporate America was put put on hold and you know was only -- -- disposals two weeks that would be a real issues so we hope they move forward.

That's why we -- -- -- so let's go through just a chronology on what happened.

When everybody knew when did you don't -- super -- super storm sandy was coming fall certainly last week kept us -- -- I can midweek if not -- I came back from Dallas.

On Saturday because on Thursday I knew this thing was happy so the exchange who knew was -- is coming.

Is well all -- -- here's what we know the major exchange changes had a big meeting on Friday discussed how they might planned for Monday opening.

They have the same they -- the same did the same it did meetings with themselves and talking to their customers are either brokerage community.

Are we should point out that the SEC communicated to the exchanges they wanted Monday morning -- Monday opening as well.

We should point out that the NYC told the -- community both Friday and Saturday that they should plan on a normal opening.

OK well they did tell them that there's always contingency plans out there IE we may go full -- of full electronic.

No floor traders but you know we're doing -- Monday opening what did that mean to the brokerage community that Goldman Sachs is the Credit Suisse is -- that -- -- -- traders.

Well they're -- -- systems in place to deal primarily.

With the integrated system that it will that the New -- exchange offers you know part electronic part brokers on the floor.

They're not really up to -- dealing with a full market system so what happens.

On on Monday morning and Sunday morning.

Round around 11 o'clock.

-- -- starts to think twice about this maybe they shouldn't be bringing their own people into.

Into New York -- -- floor brokers should be going to work.

And DA -- closed down -- made me stop rocket that's reasonable let's.

Go for now he did this obviously without knowing that his clients.

Aren't set up to go full -- prepare.

Then that contentious meeting which the fox is commune in front business network was probably don't news -- -- beyond we have to two people on.

And Adam -- one of our reporters and on the dot com or great story that night where they revolted and said listen we can do this we are not set up.

To deal with darker undoubtedly who -- who exactly was there when it out.

I don't know the Japanese but mean those -- say most of the major Wall Street firms said they couldn't deal.

-- BNP Paribas said they were fine that could've done that they were already they're not exactly one of that nature may.

That's -- offense and not have got the little guys can't why would a metric asking him.

Well who knows how they can mean they were set up to deal fully with our kind of I don't know I don't know what -- -- -- according to study there was a reason why.

Duncan -- is 180 and that was -- now here's the question.

Should the brokers have been already complain would fully with darker.

Should -- have told them Saturday that we may go full market underscored it listen just be prepared.

Is there -- combination of both that they both screwed up.

I think the latter is probably it that they both it was a lack of planning on the firm's -- -- -- -- -- In any event it's -- let's hope that it be you don't -- the problem with this is this.

This was the most telegraphed super storm natural disaster -- in recent memory right.

Let's listen you know terrorist attacks come out of nowhere are -- enable -- we don't know if they're gonna be prepared so guys.

Get prepared people accuse the media of being too hyper about it and politicians of overstating it.

Guess we can't just say you know like I said I would I knew on Thursday I had to get back Saturday.

Maybe they should have been preparing do -- chapter don't Charlie Gasparino thank you very much.

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