Kenneth A. Kavajecz, dean of the Martin J. Whitman School of Management at Syracuse University, said there are many things that could have caused yesterday’s shut down of the New York Stock Exchange on Wall Street. While cyber security could be one culprit, Dean Kavajecz doubts it. He instead points to the many complex parts that make up the exchange and any one part could have failed leading to today’s halt. In fact, individual halts happen frequently on the exchange and there are processes in place to support such activity.
“Individual stock halts happen frequently on the exchange, often when news stories come out that are price informative. Often this require traders to stop trading the stock in order to digest the news and then return to the markets. But the biggest issue is that once the exchange comes back up, people need to be willing to go back into the marketplace. Often, after significant drops in the market, people are reluctant to return to trading, which can have a negative impact on the market’s liquidity,” said Kavajecz. Dean Kavajecz has focused much of his research on the structure of financial markets, with an expertise in liquidity, trading, risk management, market structure and regulation.
Media interested in speaking with Dean Kavajecz, please contact Kerri Howell, Director of Communications and Media Relations at the Whitman School at 315.401.2736.
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