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Financial Markets to Close Jan. 2 for Ford Memorial
Financial Markets to Close Jan. 2 for Ford Memorial
By Allen Wan and Adam Satariano
Dec. 29 (Bloomberg) -- U.S. financial markets plan to observe a national day of mourning Jan. 2 for former President Gerald R. Ford, with the New York Stock Exchange joining the Nasdaq Stock Market in saying it will close.
The Securities Industry and Financial Markets Association recommending U.S. bond markets shut early to honor the country's 38th president, who died this week.
The Jan. 2 closure by the New York Stock Exchange, the biggest equity market, and the Nasdaq, the second largest U.S. exchange, would mean a four-day suspension of trading, including the weekend and New Year's Day. That would be the longest stretch since the six-day halt following the Sept. 11 terrorist attacks in 2001.
``The right thing is to be closed, to pay the proper respect to President Ford,'' Ted Weisberg, a floor broker who's worked at the NYSE for 38 years, said yesterday.
The NYSE, owned by New York-based NYSE Group Inc., has halted trading for at least part of the day for every presidential funeral since William McKinley's in 1901, according to its Web site. The past five presidential deaths, stretching back to Dwight Eisenhower's in 1969, were observed with a suspension lasting all day.
The suspension may disrupt plans for some investors, said Tim Hartzell, who manages $2 billion as chief investment officer at Kanaly Trust Co. in Houston.
``I had expected to come in on the 2nd to actively trade and was going to hit the button on a couple of stocks,'' he said. ``I think it will definitely create anxiety in the markets.''
Limited Impact
Douglas Peta, market strategist at J&W Seligman & Co. in New York, said he doubted the suspension will affect trading today or Jan. 3. Peta and Hartzell spoke following the Nasdaq's decision yesterday.
President George W. Bush yesterday declared Jan. 2, the day of Ford's memorial service in Washington, a day of mourning. He ordered government agencies that aren't essential for national security closed.
Ford, who became the country's 38th president after the resignation of President Richard Nixon in 1974, died Dec. 26 at age 93.
``He assumed a troubled presidency in a critical time, and thoughtfully and skillfully restored credibility and confidence in the presidency,'' NYSE Group, Inc. Chief Executive Officer John A. Thain said in a statement. ``President Ford also made significant contributions to the stability and vitality of the U.S. economy and financial markets.''
Board Member
Nasdaq Chief Executive Officer Robert Greifeld announced the decision in a statement recalling that in 1999 and 2000 Ford served on the board of the NASD, the largest private regulator of securities firms.
Trading on the NYSE and Nasdaq will resume Jan. 3.
The Securities Industry and Financial Markets Association suggested bond trading on Jan. 2 end at 2 p.m. New York time, which will not affect the closing for settlements. The announcement yesterday also included secondary trading in money-market securities.
An early shutdown is a switch from 2004, when the bond market's trade group recommended a full-day closure the day of former President Ronald Reagan's funeral.
The U.S. Federal Reserve Board of Governors will also close for the day. The release of minutes from the December meeting of the Federal Open Market Committee will be delayed until Jan. 3 at 2 p.m., one day later than scheduled.
The dozen regional Federal Reserve banks will be open and operate under regular business hours.
``We will be open and adhering to a normal schedule,'' said Linda Ricci, a spokesman for the New York Fed.
Treasury
Treasury Department spokeswoman Brookly McLaughlin declined to say how Treasury's operations would be affected by the day of mourning. The Treasury is scheduled to auction $17 billion of three-month bills and $15 billion of six-month bills on Jan. 2.
Representatives from the Chicago Board of Trade and Chicago Mercantile Exchange said a decision hadn't yet been made on how to observe the day.
The Institute for Supply Management, which is scheduled to release its monthly survey of manufacturing business that day, also hasn't made a decision on whether to proceed. The group will decide by today, said spokeswoman Andrea Wass.
The Washington-based International Monetary Fund will be closed.
Ford's body is scheduled to arrive at the Capitol for public viewing from Dec. 30 until his memorial service on Jan. 2. He will be the 30th person so honored, a tradition that started in 1852 with the death of Henry Clay, a senator and secretary of state, according to the architect of the Capitol's Web site.
To contact the reporters on this story: Allen Wan in New York at [email protected] ; Adam Satariano in San Francisco at [email protected] .
Last Updated: December 29, 2006 09:36 EST
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