NYSE considers earlier start
NEW YORK — The New York Stock Exchange is considering extending its trading hours, a move that could change the way Wall Street traders do business.
NYSE Chief Executive John Thain was asked about the possibility of longer hours at the World Economic Forum in Davos, Switzerland. “It’s one of many things we’re thinking about,” he said Wednesday. “There’s nothing specific.”
The Big Board is considering opening one to two hours earlier, said a member of the exchange’s floor community with knowledge of the matter. The NYSE’s hours now run from 9:30 a.m. to 4 p.m. EST.
The possibility of opening earlier is getting a look from NYSE management because it could help the stock exchange compete with European bourses, which operate on a time zone that is hours ahead of the United States. “The exchange is exploring a number of options to grow our business,” said NYSE spokesman Ray Pellecchia in New York.
Thain has remarked in the past that the NYSE may need to find ways to grow. The 212-year-old exchange faces challenges such as uncertainty over a market-reform plan now being considered by the Securities and Exchange Commission; competition from electronic markets; and lower prices for its memberships. Big Board “seats” are down 20 percent from last year and off 55 percent from their all-time peak of $2.65 million in 1999.
A longer trading day at the NYSE would change the way Wall Street operates. “I’m not looking forward to that,” said Jay Indovino, head of trading at SunGard Institutional Brokerage. “I need more sleep to begin with.”
The notion of an earlier open at the NYSE leads to many unanswered questions.
Would the earlier hours be as busy as the 9:30-4 day now is or would it be more like a “pre-opening” session?
How would the army of floor brokers and “specialist” traders that run the NYSE’s auction market be affected?
How would longer and earlier hours play into the way companies disseminate news?
There’s also the possibility that other markets could follow suit if the NYSE opens earlier.