A UBS exec lays out the benefits and pain points of all-electronic trading after coronavirus concerns cleared the floor at NYSE
- Vlad Khandros, the global head of market structure and liquidity strategy at UBS, said some of the Swiss bank’s clients were questioning whether exchanges’ physical trading floors should reopen.
- The New York Stock Exchange, along with Chicago trading pits run by Cboe Markets and CME Group, temporarily closed in recent weeks as a result of the spread of the novel coronavirus.
- Khandros said the US equities market has largely worked fine despite NYSE’s trading-floor closure.
- Options trading may be one market that has been negatively affected by not having a trading floor, he added, though it might be too early to understand what the root cause of the issue is.
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With exchanges’ physical trading floors empty amid concerns over the spread of the novel coronavirus, some on Wall Street are asking if they should keep their doors closed for good.
Vlad Khandros, the global head of market structure and liquidity strategy at UBS, said “a number of clients” have asked if trading floors will ever reopen, with many hoping they remain closed because they view it as an additional source of friction for trading.
“The longer things go very smoothly, the more clients are wondering …continued .
[Source: Business Insider]