The Securities Industry and Financial Markets Association recommended a full open market tomorrow in dollar-denominated fixed-income securities in the U.S. after Hurricane Sandy closes the market for a day and a half.
The suggestion followed the halting of trading of government securities, mortgage- and asset-backed debt, over-the-counter investment grade and high-yield corporate bonds, municipal bonds and secondary money-market trading in bankers’ acceptances, commercial paper and Yankee and Euro certificates of deposit that began at noon on Monday, the New York-based trade group said in a statement.
Sandy, the Atlantic’s largest-ever tropical storm, struck the East Coast yesterday with a life-threatening surge, emptying the streets of the nation’s largest cities and lashing a region of 60 million with gales and rain. The storm, 900 miles across, may cause as much as $20 billion in economic damages, according to Eqecat Inc., a risk-management company in Oakland, California.
Sifma’s decision followed the announcement that U.S. equity markets will reopen tomorrow after the longest weather-related shutdown in more than a century. The decision was announced in statements by NYSE Euronext, Nasdaq OMX Group Inc. and Bats Global Markets Inc.
Editor: Kenneth Pringle