NYSE Lets Floor Brokers Use Personal Phones
Traders Magazine Online News, November 8, 2012
Brokers are being allowed to use their personal cell phones on the floor of the New York Stock Exchange, in the aftermath of Hurricane Sandy.
The use of mobile phones came after communications that serve exchange-issued portable phones and Internet service on the trading floor failed. As a result, floor brokers were unable to communicate with their customers over authorized portable, land line and Internet connections.
The NYSE on November 1 asked the SEC for a temporary suspension of Rule 36, which bars designated market makers and floor brokers from using personal phones on the floor. With the rule suspended, floor brokers have been able to bring their own cell devices onto the trading floor.
As of Monday, November 5, power was restored to the downtown Manhattan vicinity. Still, the telephone services provided by carriers to the exchange were not fully operational on the trading floor, the NYSE indicated in a filing with the SEC.
“Accordingly, the Exchange proposes that the extension of the temporary suspensions of those aspects of Rule 36 that do not permit DMMs or Floor brokers to use personal portable phones on the Trading Floor continue until the earlier of when phone service is fully restored or Friday, November 9, 2012.”
If phone service is not fully restored by the end of Friday, the exchange may have to request a further extension of its request.
Under the filing, floor brokers and designated market makers that use a portable personal phone must provide the exchange with the names of all floor-based personnel who used personal portable phones during this temporary suspension period, together with the phone number and applicable carrier for each number.
Floor broker and designated market makers must also maintain in their books and records all cell phone records that show both incoming and outgoing calls that were made during the period that a personal portable phone was used on the trading floor.
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