The traders who work there still handle certain critical processes, particularly the 4 p.m. closing auctions that determine end-of-day prices for thousands of NYSE-listed stocks. The closing prices are used as benchmarks by index funds and ETFs owned by millions of investors, as well as numerous futures and options contracts. Closing auctions have drawn an increasing share of daily trading volume over the past decade, in part because of the rising popularity of ETFs and index funds.
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Without physical traders, NYSE braces for risk of end-of-day stock prices
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“The closing auction is arguably the most important moment of the trading day,” said Greg Tusar, a former global head of electronic trading at “Anything that happens to it that hasn’t been tested is a risk that is material in nature.”
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