For the New York Stock Exchange, last weeks’ outage was something that took a lot of people by surprise. It wasn’t something that anyone really saw coming, and while many people thought it could’ve been an attack of some kind – it actually proved to be nothing of the sort. Trading continued on other markets, so stocks wouldn’t be impacted, which was a contingency plan put in place by the NYSE. The stocks were unaffected and the market as a whole performed well, despite what some analysts said could have happened.
This raises a lot of questions, not only about what happened to cause the outage. NYSE officials have said that the cause of the outage was a software glitch that caused a widespread failure, but also that the failure wasn’t something that should be alarming. In fact, the major exchange made a big point to ensure that they were going to see this all the way through without any negative backlash.
Interestingly, many have pointed out that perhaps the biggest question that remains is the one regarding the relevance of the NYSE. Given the fact that the outage, which lasted several hours, had no impact on the overall production of the stock market that particular day, there are a lot of questions to be answered about its necessity. Is the NYSE something that is necessary? Do their stocks thrive on it? Is there something significant to be gained from having this particular index?
These are completely legitimate questions, but questions that don’t really have specific answers right now. It isn’t clear where the index stands in terms of health. It isn’t clear how long it will be before answers are found, but the future of the traditional stock market – where individuals trade on paper is something that is definitely in question.
The NYSE has come a long way from what it was in the early days. When it first was created it was the literal epicenter of all trading and stocks. However, as time went on things expanded and the market expanded. When the market expanded there were different things in play. However, it’s something that wasn’t really known at the time – the way the market expanded as a whole.
Some have even pointed out that there is a place for the NYSE. However, the place for that stock exchange is in a museum, or so they have said. That’s not to say that the NYSE will be gone ten years from now, or even twenty, but the state of it will be dramatically different than it is today.