July 09, 2015

CUA Law professor David Lipton was quoted in an article published by Inside Counsel discussing the shutdown of the New York Stock Exchange due to a possible technical failure.

Trading halt on NYSE floor reveals vulnerability

From: Inside Counsel
Date: July 9, 2015
By: Ed Silverstein
. . .

Specifics have yet to be released on the July 8 glitch, and they may help to explain why the trading floor was closed for so long before trading resumed.

"Why it took three and a half hours, I don't know," said David Lipton, a professor at Catholic University's Columbus School of Law, where he also directs the schools' Securities Regulation Program.

In an interview with InsideCounsel, Lipton speculated that for the companies that trade on the exchange one of their biggest concerns when there is such a halt in trading on the floor is the "loss of confidence in the market."

"Three hours is a long time," Lipton said.