1996. Wall Street's Chaotic Trading Floor Before Computers

Watch this video until the middle. That's where you hear the individual traders. This was complete madness. I filmed it back in 1996. I had no idea what was going on with stock trading and it made no sense to me. But it's amazing that the New York Stock Exchange let me on the floor with a soundman to film, as they were beginning to use modern electronic trading. The New York Stock Exchange (NYSE) has a long history that dates back to 1792. However, the adoption of electronic trading at the NYSE was gradual, taking place over many years. The NYSE started computerizing some of its operations in the 1960s, but this was mostly for back-office tasks and not for actual electronic trading. In the 1970s, the NYSE introduced DOT (Designated Order Turnaround (DOT) System) which was an early attempt to route orders electronically. However this system didn't replace the traditional open outcry trading method that I filmed shown here; instead, it was used in conjunction with it. By the 1980s, the NYSE upgraded the DOT system to SuperDot, which allowed for faster and more efficient order routing. Fast forward to the early 2000s, the NYSE introduced a "hybrid market." This combined the traditional floor trading with electronic trading elements. It allowed for electronic order executions while also retaining floor traders to handle complex transactions. The actual transition to almost entirely electronic trading took place much later. The impetus for this came unexpectedly due to the COVID-19 pandemic. On March 23, 2020, the NYSE temporarily closed its trading floor and moved to all-electronic trading in response to the pandemic. This was the first time in the NYSE's history that electronic trading was used exclusively. On that day, the transition to electronic trading was generally smooth. The systems handled the trading volume well, and there were no major technical glitches reported. That said, the broader stock market was undergoing significant volatility due to concerns about the pandemic and its economic implications. It's worth noting that this was more a reflection of the broader economic environment rather than the shift to electronic trading. The NYSE reopened its trading floor on May 26, 2020, but with various precautions and reduced personnel. While the floor reopened, the experience with electronic trading solidified the importance and viability of technology-driven trading.