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CHAPTER ONE | CRISIS CREATES OPPORTUNITY
Stockbrokers working on the floor of the NYSE in 1963. (Photo courtesy of Library of Congress Prints and Photographs Division Washington, D.C. 20540 USA. Collection: U.S. News & World Report magazine photograph collection. Reproduction Number: LC-DIG-ppmsca-03199.)
It would only amp up from there, with each successive quarter of 1967 breaking the record set by the previous one. In all, some 2.53 billion shares—a 33 percent increase over 1966—were traded. The problem was becoming a full-blown crisis, and the NYSE Board of Governors began to act. In August, it curtailed trading by 90 minutes on nine consecutive days to allow firms to catch up on paperwork. By the end of that year, it had authorized nine “combined settlement dates” in the last five months of the year to allow firms to concentrate on their individual paperwork problems. Most significantly, however, the NYSE opted to discontinue development of its central computer accounting programs and to redirect the manpower and funds into the development of the Central Certificate Service (CCS).
1968 JUNE The Central Certificate
1968 DECEMBER
1969 FEBRUARY The NYSE and AMEX retain the Rand Corporation to develop a plan to improve operations of the securities industry. Rand identifies expansion of CCS, advanced design of an automated clearing and central certificate system, and floor automation that would integrate with CCS as keys to future success.
1969 JUNE
Despite having 12 percent fewer trading hours than in 1967, 1968 ends with a new record of 2.93 billion shares, an increase of 400 million shares over the previous record. On 25 days during the year, the reported volume exceeds the 16.4 million
CCS expands its operations. By the end of the year, CCS has 464 million shares on deposit.
Service (CCS) is activated on a limited basis by the NYSE. Initially, ownership in shares of four NYSE-listed issues were transferred by computer bookkeeping entry, with other issues phased in throughout the year. By the end of its first six months of activation, CCS handles 535 listed issues, about 43 percent of the total.
share daily record set during the 1929 stock market crash.
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