[Infowarrior] - U.S. Markets to Be Closed on Tuesday

[Richard Forno]

Investment Banking October 29, 2012, 1:37 pmComment
U.S. Markets to Be Closed on Tuesday

By MICHAEL J. DE LA MERCED

Michael Appleton for The New York Times

http://dealbook.nytimes.com/2012/10/29/u-s-markets-to-be-closed-on-tuesday/

Stock markets in the United States will be closed again on Tuesday for a second day without trading as Hurricane Sandy roared closer to the New York area.

The New York Stock Exchange and BATS Global Markets said in separate statements that they have agreed to close, after consulting with other exchanges and clients. The N.Y.S.E. added that it planned to operate on Wednesday, pending developments in weather conditions.

The decision came as little surprise, with market operators already hinting that they would stay closed as the storm’s impact intensified. And the Securities Industry and Financial Market Association, an industry trade group, recommended that United States bond markets stay closed on  Tuesday as well.

A continued stoppage in trading is expected to have some costs for exchanges like the N.Y.S.E. and the Nasdaq stock market. Richard Repetto, an analyst at Sandler O’Neill & Partners, estimated that stock and option exchanges would lose about $1 million in transaction fees for every day that they are closed.

That loss of revenue would likely have little impact on those companies’ earnings, he added, though Mr. Repetto added that he did not factor in lost revenue from exchanges’ other businesses.

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