If NYSE floor traders all get fired does that mean that CNBC will have to hire actors to mill about and shout during segments from the NYSE floor?
Granted, we’re nowhere near there yet, with this news being mostly about brokers cutting direct access traders who service institutional clients directly, but it is still worth noting. If nothing else, it is going to make a long overdue cut to an information conduit to the upstairs traders.
Goldman Sachs Group and Lehman Brothers Holdings Inc. plan to shut down their direct access floor broker businesses and fire traders at the New York Stock Exchange next month, as more trading activity moves to electronic networks, the banks said on Friday.
…The New York Post on Friday reported Goldman would cut nine trading floor jobs. Goldman said people who lose their jobs will continue working at the bank for 60 days.
Lehman Brothers spokeswoman Kerrie Cohen said the investment bank decided to exit the floor-based direct access business. The bank cut six traders as part of the move, a source familiar with the matter said.
These moves come as more trading volume shifts from traditional open outcry to faster, cheaper electronic systems. The NYSE in recent months rolled out a “hybrid” trading system, which has accelerated the shift of trading volume from the floor.
Earlier this week, Bank of America’s specialist business laid off 40 NYSE employees and said 20 to 40 more jobs may be cut. LaBranche & Co. , the Big Board’s leading specialist firm, fired about 165 traders between 2001 and December 2006.
The company’s chief executive said in December that LaBranche could lay off another 80 or so traders in coming months.