The New York Stock Exchange may be 224 years old, but it is now using 21st century technology.
The rules for NYSE mobile phone use have now changed. Brokers can use their personal mobile devices on the trading floor in Manhattan. This decision is a significant one and is meant to address a problematic issue.
The decision was made following a hectic day last Friday when a communications breakdown occurred.
That day, the results of the Brexit were announced, and the United Kingdom voted to leave the European Union. The landline service to brokers failed. That said, not all brokers had NYSE mobile phone approval. The brokers were not allowed to use their mobile devices without that specific authorization. Following that communications disaster, personal mobile phones can now be used.
This NYSE mobile phone decision may be a temporary one, according to a regulatory filing.
A statement from the NYSE read “Communications with customers is a vital part of a floor broker’s role.” It also added “Brokers who do not have exchange authorized and provided portable phones should be permitted to use personal cell phone devices, in lieu of the non-operational wired phone lines.”
This indicates that the authorized mobile devices and provided portable phones are the preferred methods. However, should those become non-functional or unavailable, then personal mobile phones become an allowable alternative. It is also the only option for many brokers at the moment as the outage was a lengthy one.
At the time of the writing of this article, the NYSE was still working with its phone carrier. The hope was that the floor brokers’ telephones would be working again soon. The outage that brought about this change in NYSE mobile phone regulations did not impact the “designated market makers.” They are the overseers of the floor for stock trades.
Should this regulation remain as a kind of back-up plan for brokers it could help to avoid the type of communication struggle they faced last Friday. Many consider this move to use personal mobile phones a step in the right direction to catch the New York Stock Exchange up to the current century.