FOX Business Network’s (FBN) Charlie Gasparino reports the New York Stock Exchange (NYSE) did not rely on their Arca electronic exchange on Monday and Tuesday because the brokerage firms “never tested their connectivity” to Arca and therefore “they didn’t have confidence” in it.
Excerpts from the report are below:
On the reason why the NYSE decided against opening the markets with Arca:
“The brokerage firms were complaining because they didn’t have confidence in Arca because they didn’t test their systems, their own internal systems, to see if they could interact with the electronic network. And what they are saying is this, that the SEC, is allowing Arca to operate as an independent exchange. Anytime the NYSE could just declare it, this is our market, forget about the specialists. The NYSE is telling the FOX Business Network that the big firms never tested their connectivity, or not enough of it…what they are saying also in the NYSE, is at the very minimum the SEC should have forced this sort of testing.”