The New York Stock Exchange is looking at social media to attract and contact investors to find buyers and sellers to set closing stock prices.
The exchange is looking at Facebook and Twitter to look for investors when email fails. This move was spurred when the exchange suffered a technical glitch that still sent out email notifications to investors to a stock with an outside number of unfilled buy orders was delayed by seven minutes.
It is important that the ‘buy’ and ‘sell’ orders at the close remain close since a big mismatch will cause the stock to close higher or lower than its actual trading level. To make sure that this scenario does not occur, members can invoke a rule to extend trading to even out the imbalance.
But because of the glitch, the exchange will use social media to solicit orders to help address the imbalance.
With a lot of global newspapers using social media especially Twitter makes it an excellent aggregator of real time information. Many investors have also started using and adopting the use of social media to get their daily dose of information.
Dave Lutz, Managing Director Stifel Financial Corp: “I’ve been using Twitter for about 18 months at this point. A lot of investors are starting to rely more and more on Twitter as a valid news resource.”
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If the NYSE goes ahead with this digital engagement strategy, we can expect a much bigger interest for social media from all the parties dealing with the NYSE.
In your opinion, how many more new twitter accounts will be created by the brokers and investors of this world in the next few months?
Do you think this move from the NYSE will become an essential milestone which could prove decisive in driving a broader adoption of social media in our highly regulated financial services and investment industry?
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