Wall Street, Hedge Funds Brace For Hurricane Sandy

Oct 29 2012 | 12:57pm ET

The world's hedge fund capital ground to a halt yesterday and today as an unusual storm threatens to wreak havoc on the U.S. East Coast.

The New York Stock Exchange closed its trading floor for the first time in almost 30 years due to the approach of Hurricane Sandy, but said that stocks listed on the Big Board would trade on its electronic exchange, NYSE Arca. The Nasdaq Stock Market also said its electronic trading operations would remain open.

Meanwhile, other financial institutions prepared for the storm, moving employees into hotels in Manhattan and planning to route orders—expected to be light in volume—through offices elsewhere in the U.S.

Sandy is not expected to hit the New York area—home to both the world's largest hedge-fund jurisdiction, New York, and its third-largest, Connecticut, as well as another major hedge fund center, New Jersey—directly. But an unusual Arctic jet stream situation is likely to have the storm take a hard left turn inland near Wilmington, Del., sending a huge storm surge and powerful winds into the tri-state area.

Even if Sandy does not cause the flooding—Lower Manhattan's Financial District is said to be particularly vulnerable, and the hedge fund Riviera along Connecticut's Long Island Sound shoreline is expected to be hit with some of the largest storm surges—and power outages feared, officials have preemptively acted in ways that make it impossible to do business as usual. Some 375,000 people in New York City alone have been ordered to evacuate, and all mass transit operations in the city and its surrounding areas have been shut down, making it hard for employees to get into and around Manhattan, or for hedge funders to get from Manhattan to Greenwich, Conn., and Stamford.

The mass-transit shut-downs affect the New York City Subway, the Long Island Railroad, Metro North Railroad, which serves the city's northern suburbs and Connecticut, and New Jersey Transit. In addition, Amtrak services are suspended north of New York City.

Among Connecticut and New Jersey hedge funds, there is an additional fear that, should power be lost, it will take longer to restore it in the suburbs than in New York City. But many have contingency plans for such after last year's near-miss with Hurricane Irene.


In Depth

Q&A: Brevan Howard’s Charlotte Valeur Talks Strategy

Sep 18 2014 | 11:18am ET

Charlotte Valeur chairs the board of Brevan Howard Credit Catalysts, an LSE listed...

Lifestyle

Griffin Donates $1M To Rauner's Illinois Gov. Campaign

Sep 22 2014 | 9:29am ET

Hedge fund billionaire Kenneth Griffin definitely has a dog in this fight. The Citadel...

Guest Contributor

Top 5 Predicted Outcomes Of CalPERS' Hedge Fund Divestment

Sep 22 2014 | 8:35am ET

CalPERS’ announcement to divest of hedge funds has created a significant buzz...

 

Videos

Editor's Note

    Get A Sneak Peak Of The Alpha Pages

    Aug 25 2014 | 11:21am ET

    As many of you know, FINalternatives was recently acquired by the owners of Futures magazine, a firm called The Alpha Pages LLC. Today marks the soft-launch of a new sister site for both publications. As its name suggests, The Alpha Pages will cover all types of alternative investments, going far beyond the more well-known ones such as hedge funds and private equity. Read more…

 

Futures Magazine

September 2014 Cover

The London Whale: Rogue risk management

Credit default swaps brought down the London Whale and cost JPMorgan $6.2 billion. Here is how it happened.

The Alpha Pages

TAP July/August 2014 Cover

The Alpha Pages Interview: Senator Rand Paul

Senator Paul sat down in the debut series of the Alpha Pages Interview to discuss the broken tax code, regulation surrounding Bitcoin, and his plans for the 2016 Presidential election.