Exchanges' computers overcome the volume
Article Abstract:
New computer systems at stock exchanges withstood crushing volume on Oct 16, 1989, with only minor problems. On that day, volume reached 227 million shares on the New York Stock Exchange by the end of the trading day at 4 P.M. The day started with trading of more than 145 million shares in the first hour of business, which has been surpassed only once in stock exchange history. Except for one slowdown at the American Stock Exchange, the computer system worked without delay. Since the stock market crash of Oct 1987, trading systems have been upgraded with millions of dollars' worth of new computer equipment. Most significantly, the common message switch at the New York Exchange, which could carry 80 buy-or-sell orders a second, has been upgraded. The switch now has a capacity of 210 to 240 messages per second. On Oct 16, the switch was handing between 110 and 118 per second in early, heavy trading.
Publication Name: The New York Times
Subject: News, opinion and commentary
ISSN: 0362-4331
Year: 1989
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Outcry on computerized trades is forcing changes by Wall Street
Article Abstract:
New stock market rules are being adopted as the outcry against program trading grows and more securities firms stop the practice. The New York Stock Exchange (NYSE) is discussing possibly expanding curbs on index arbitrage, the main target in the campaign to stop wild market swings. The Chicago Mercantile Exchange will tighten rules on trading halts in a failing market. The NYSE also says it will support a Federal regulation stopping index arbitrage. Congress is considering imposing a tax on short-term trading profits as well. The critics of this anti-program trading campaigns complain of hysteria and say that index arbitrage is being used as a scapegoat for volatility problem.
Publication Name: The New York Times
Subject: News, opinion and commentary
ISSN: 0362-4331
Year: 1989
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Comex to test hand-held computers to record trades
Article Abstract:
The Commodity Exchange Inc (Comex) begins floor-testing a new hand-held computer designed to prevent trading fraud. The device replaces hand-written cards with a computerized tracking system that records transactions as they occur and creates an audit trail and time-stamping. Trading information is stored on removable diskettes that can be read into a central computer. The 'open outcry' method used by commodity exchanges can still be used along with the devices. The initial version of the AGS Information Service Inc device will be tested on the exchange floor in 1st qtr 1990. Comex estimates the development cost of the unit to be about $200,000.
Publication Name: The New York Times
Subject: News, opinion and commentary
ISSN: 0362-4331
Year: 1989
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