Great News: Technology Has Advanced Since 1996

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Back when the business of buying and selling stocks depended on human traders gathering in the same physical location -- the New York Stock Exchange in lower Manhattan, for instance -- a major snow storm could snarl commutes so badly that exchanges had to shut. That’s what happened during the blizzard of January 1996, which took place before computers dominated. Although pilloried by critics for making markets more difficult for humans, the technological revolution -- which shifted most trading to computers housed in data centers in New Jersey and elsewhere -- may have made markets more resilient to the weather. “We’re in Chatham, New Jersey, and we can trade tomorrow,” said Joe Saluzzi, co-head of equity trading at Themis Trading LLC. “If they’re open, we’re ready to go. Everybody has backup systems and after things like Hurricane Sandy and some storms of the past couple years, people have really locked down their backup systems and are ready to go.” [Bloomberg]

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