From the April 01, 2007 issue of Futures Magazine • Subscribe!

Volume troubles at NYSE

Rumors have surfaced that the SEC is looking into whether the New York Stock Exchange’s (NYSE) shift toward electronic trading affected its ability to handle a surge in trading volume, such as one that occurred Feb. 27.

While a spokesperson for the NYSE declined to comment on the matter, a spokesperson for the SEC says, “Our staff is working closely with the NYSE and other markets regarding Tuesday’s events to evaluate how orders were handled and whether any enhancements are necessary.

Through the past year, the NYSE has shifted much of its trading away from its floor and onto an electronic platform, a move that promises faster execution times, but some fear it can’t handle all the volume.

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