Knight Capital Halts Trading As New York Returns To Work

Oct 31 2012 | 1:42pm ET

As New York City struggles to return to business as usual, one brokerage across the river has been forced to stop trading.

Knight Capital Group, which is based in Jersey City, N.J., told customers today that it is experience "power issues," and that they should route their stock trades elsewhere. Knight said it is not accepting any new orders for the time being.

"Due to a building emergency (power issues), Knight Capital Americas is asking you to seek an alternate destination for order handling and execution of your OTC, options and listed orders until further notice," the firm said in a memo. "All computer interfaces with Knight will be shut down with no new orders, both by phone or electronic, being accepted at this time."

Elsewhere in the region devastated by Hurricane Sandy, the New York Stock Exchange reopened as scheduled this morning. Mayor Michael Bloomberg rang the opening bell and traders were briefly rewarded with small gains, although stocks are now down slightly.

NYSE Euronext CEO Duncan Niederauer said that the exchange was "pleased to see the turnout of staff." It couldn't have been easy for many of them; with the exception of limited bus service in New York City, all public transit in the area remains shut down, although two commuter rail lines, the Long Island Railroad and Metro North Railroad, which serve the northern and eastern suburbs, are set to begin rolling again on a limited basis at 2 p.m. today, and the New York City Subway will begin limited service tomorrow.

No trains will run in Manhattan south of 34th Street, which remains without power, leaving the Financial District without its usual complement of public transport. Buses will seek to pick up the slack between downtown Brooklyn and Lower Manhattan, the latter of which was among the hardest-hit parts of the region, with streets, buildings and subway tunnels and stations flooding.

Traffic into Manhattan was extremely heavy today, as commuters drove into town without the benefit of the Queens-Midtown Tunnel or Brooklyn-Battery Tunnel, both of which remain flooded. All other crossings into Manhattan were open, and taxis were picking up multiple fares. Many commuters eschewed motorized transport altogether and walked to work, either over the city's bridges or from other parts of Manhattan.

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