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Daily Digit: Exchanges lost $1 million a day

Wednesday, October 31, 2012 - 01:36

Oct. 31 - NYSE, Nasdaq, and the CBOE each lost about $1 million in trading revenues a day due to Hurricane Sandy before resuming trade on Wednesday, says Sandler O'Neill. Sasha Salama reports.

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$1 million is today's daily digit. This is how much the New York Stock Exchange, Nasdaq, and the Chicago Board Options Exchange each gave up in lost trading revenues on Monday and Tuesday. That's according to investment banking firm Sandler O'Neill. The exchanges had been shut down for those two days due to Hurricane Sandy. Richard Repetto, of Sandler O'Neill, says one million a day equals, at most, one penny per share in lost earnings for both days combined. SOUNDBITE: RICHARD REPETTO, PRINCIPAL, SANDLER O'NEILL AND PARTNERS (ENGLISH) SAYING: "We calculated the a million plus in revenue in trading for the NYSE and NASDAQ by taking what we estimate as the average daily volume, you know, the volume we expect them to average per day in the fourth quarter, multiplied it times how much they make, or what we call the revenue capture, so that would give you the average revenue per day. So that is, believe it or not, just a little bit over a million dollars for both, cash equity trading and for option trading at each, at the NASDAQ and the NYSE." Repetto also says Hurricane Sandy has not done much damage to the markets or trading firms, and that electronic trading will always require a human presence.

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Daily Digit: Exchanges lost $1 million a day

Wednesday, October 31, 2012 - 01:36