Monday, October 29, 2012

Why the New York Stock Exchange Must Open on Wednesday

Posted By on Mon, Oct 29, 2012 at 3:00 PM

With the New York Stock Exchange going dark today and Tuesday as Hurricane Sandy intensifies along the Eastern Seaboard, historians note that the last time the NYSE closed down because of weather was for Hurricane Gloria on Sept. 27, 1985.

One of the huge questions being asked by traders and investors is: "When will the markets be open?" In fact, some are concerned about whether the markets will re-open before Wednesday, Oct. 31.

That's because the last trading day of the month is a very important time for people across the financial services industry. Month-end reconciliations determine market performance, fund performance, and trader performance, which are all based on the final settlement prices.

As an example, if a hedge fund needs to send out statements to their investors outlining their performance, they will need the exchange to be open.

Additionally, mutual funds and hedge funds need to determine end-of-month statuses based on asset allocation models.

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