Analysts and the media speculate whether the corona crisis could lead to stock market closures. Some even believe that cryptocurrencies may be among the last asset classes that can still be traded in a few weeks.
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• Corona virus is spreading
• Analysts fear closings
• Crypto trading is not at risk
In Europe and Asia, entire cities have been blocked off due to the spread of the corona virus. So it is no wonder that market participants are wondering what will happen if the virus reaches the trading venues?
Out of concern for the health of exchange traders, the Philippines has therefore become the first country in the world to stop currency and equity trading indefinitely. In view of the health risks and the turbulence on the markets, analysts can no longer rule out that other trading venues will also take similar measures.
Crypto trading continues
The cryptocurrency portal “BeInCrypto” also dealt with the topic of global stock exchange closings and pointed out that crypto trading “never sleeps”. The market for Bitcoin and Co. could not be closed, which is why the unusual situation could arise in a few weeks that the crypto market could be one of the few still active financial markets.
Although this scenario appeared unthinkable just a month ago, given the recent developments and the measures taken to contain the disease, it no longer seems too far-fetched. If this actually happened, then according to “BeInCrypto”, this would make the strength of the crypto market clear.
Realistic scenario?
But is it really realistic that only the crypto market can stay on its feet? The established exchanges at least have plans for emergency situations and should be prepared for emergencies.
This becomes clear, for example, on the New York Stock Exchange, which has completely switched to electronic trading for an indefinite period since March 23. Wall Street history has never been closed for a long time in Wall Street history, but the measure was deemed necessary after two employees became infected with the corona virus.
However, trading should not affect this: “Our markets are fully capable of working fully electronically,” the NYSE announced on its website.
Even in Frankfurt you see yourself armed to be able to maintain trading even in the event of a shutdown. A spokesman for Deutsche Börse told the “shareholder”: “There are basically rules for exceptional situations. Trading participants can then also participate in exchange trading outside of the approved locations in Frankfurt. Trading participants must inform the management of the exchange about this.”
The Berlin, Stuttgart and Dusseldorf stock exchanges made similar statements to the “shareholder”. They referred to their emergency plans and to the fact that closure was not necessary because trading is now purely digital, meaning that dealers and brokers no longer meet on the floor.
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