The sun. [volume] (New York [N.Y.]) 1833-1916, 1906-11-25
STOCK TRADING AT ALL HOURS
QUE DEALINGS IN rHE L0vDos
MARKET AXE NCREASIN0

~ AKE
Tne Lswbars street Curb m Open &C
m. Our Trme. and Even Eaxlfsr, snn
Dscs Nss Cisse wan street. ssuss
ID ~shsp-auscn Deals ~ CabiA
n b q long trip from wall Street 10 LOCI
bard Street. but often an order b hzv %
sell stoci<s Rivsn IN New York n szecutsd
IN London IN little over two minutes. 10
the last few months the markets. have bean
brought closer together N dealings hv
New York In the London market and London
n tho New York market have becoms
eavier than ever before.
The differences IN time between London
and New York. formerly considered an I'M
psdiment 70 transatlantic transactions.
has now come TO be regarded a. q distinct
advantage. The London market opens az
II A. NJ, London time, which b Q A. N.
here. and closes at 4 p. H., London tina.
equivalent 10 II A. NJ New York. Thus
there 10 only one hour daily during which
the exchanges are both open. and on GO
count OF the time consumed In transmitting
orders less than an hour for tra1asacttou
Of the arbitrage business. which depends
on variations in prices In the two markets.
Formerly such arbitrage transactions con-
stituted the principal business. except IN
the cascs Of he most expcrieoed operators.
Now the arbttrage trading for fractions Of
points h small IN comparison with the othev
business.
For instance. the New York trader has
found ft Of advantage to place orders after
the New York closing. TO be executed tn
the London market the following morning.
In times Of activity large buying and selling
orders go across every night. II the trader
learns, for example, after the closing Of
the New York market OF a important de-
velopment affecting q particular issue, h
in to his interest TO take advantage OF bis
knowledge at the earliest possible momen
II he waits for New York to open the
knowledge may have become widely dis
seminated. By dealing m London he get.
in a. early. at least, as any one else.
This advantage 10 enhanced from the fact
that the London curb mark et diff ers from
ours. In London the curb mark ct In open
before and after Stock Exchange hours,
and it deals in listed stocks, while in New
York the curb hours are the same as those
Of the Stock Exchange and only unlisted
securities are dealt In. Consequently in
ordinary times one may begin dealing on
the London curb at 5 A.. NJ. and IL need be.
for various reasons advantageous. 10
confine his dealings to the London market,
continue until 8 O'Clock in the evening. Lon
don time, the hour Of our closing.
In times Of great market activity arrange
ments are frequently made by the Wall
Street houses with London connections for
early opening or a late closing Of the London
curb. On the day, last August, Of the
declaration Of the Union Pacific and South
ern Pacific dividends curb brok ers in Lon
don were kept busy executing orders until
late in the night. OF an early opening the
Late election supplies a timely example. All
the big houses with London connections
made arrangements to keep open all night
and 10 have the London curb or n at .
A. M. or A. NJ, New York time. The plans
were carried out. but trading was light In
comparison with what it would nave been
had the returns favored Hearst.
The diff erence In time, which aforSis prace
tically an all night and all day Seock Ex-
change, rs also a great help to POOL opera
tons. 1t is possible to buy stocFs in Lon
don for rhe purpose OF stimulating The
New York market. and buy in New York
for the purpose OF stimulating the New
York mark ct.
Brokers and experienced operators,
abroad for a vacation. srend more and
more of their time in London and combins
business with pleasure. Some OF them. on
their return last summer, said that they had
got as far "a London and stayed there, en-
gaging in business daily and max ing more
money than il they had remained In their
New York Offices.
In London also stocks are bought and
sold for the fortnightly settlement, and
stocks bought and sold between settlements
are free Of interest. With high money
rates in this city very often the saving
in interest Is more thar sufficient to pay the
expense Of cables md other charges and
leave q comfortable sum beside. On 90
~casions. also. stocks may be carried over
the London settlement much more cheaply
than it is possible 10 carry stocks In this
city.
In the late summer and early fall. when
interest charges were very high in New
York and very low in London. a multitude
OF financial writer's insisted that there mus.
be liquidation in the New York market.
interest rates being altogether too high
here to permit profitable holding Of stocks
for a rise. But the market held firm and
gradually il came out that scores Of thous-
ands OF shares were being carried verv
cheaply IN the London market. the great
majority Of the big operators having placed
apparently their actual purchasing orders
in London.
Houses which have developed trans
atlantic business hsve excellent cable
arrangements with London. so hat the
interchange OF business rs very rapid. In
these houses orders are cabled. executed
in London, and REPLIES racaivad in frc,,