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| Working From Home Feeds Market’s Woes in Little Ways That Add Up | Working From Home Feeds Market’s Woes in Little Ways That Add Up |
| (8 days later) | |
| Toggling between two computer screens instead of four. Slower wireless connections. Plain old cellphones — missed calls and all — standing in for highly programmed devices that allow instantaneous connections. Instant messaging and video conferencing replacing quick bursts of conversation across a floor. | Toggling between two computer screens instead of four. Slower wireless connections. Plain old cellphones — missed calls and all — standing in for highly programmed devices that allow instantaneous connections. Instant messaging and video conferencing replacing quick bursts of conversation across a floor. |
| Ever since the coronavirus pandemic forced thousands of traders, sales representatives, analysts, bankers and risk managers out of their workplaces and into their homes, the foot soldiers of finance have been making do with technology that’s far more ordinary than many of them are used to. | Ever since the coronavirus pandemic forced thousands of traders, sales representatives, analysts, bankers and risk managers out of their workplaces and into their homes, the foot soldiers of finance have been making do with technology that’s far more ordinary than many of them are used to. |
| The individual inconveniences are relatively minor — one trader missed a special Bloomberg keyboard, another struggled with having the chat window to his left instead of right — but together, they have had a noticeable impact on the functioning of markets, according to traders, investors and regulators. Over the last month, as much of the finance industry adjusted to working from home, the rapid-fire, split-second nature of global trading slowed slightly because communicating decisions took longer. And that, in turn, added a layer of unexpected friction to already volatile markets. | The individual inconveniences are relatively minor — one trader missed a special Bloomberg keyboard, another struggled with having the chat window to his left instead of right — but together, they have had a noticeable impact on the functioning of markets, according to traders, investors and regulators. Over the last month, as much of the finance industry adjusted to working from home, the rapid-fire, split-second nature of global trading slowed slightly because communicating decisions took longer. And that, in turn, added a layer of unexpected friction to already volatile markets. |
| “When people are in a new environment and using new systems, combined with market volatility, it slows things down a bit,” said Michael O’Brien, director of global trading at the Boston-based investment management company Eaton Vance. | “When people are in a new environment and using new systems, combined with market volatility, it slows things down a bit,” said Michael O’Brien, director of global trading at the Boston-based investment management company Eaton Vance. |
| Of course, much of the recent choppiness in financial markets is tied to fears about the economic fallout of the pandemic, as people around the country shelter in place. But the sudden scattering of many of Wall Street’s traders from their hubs in Lower and Midtown Manhattan and toward a honeycomb of home offices and emergency backup locations introduced an element of discombobulation that few firms had prepared for. Traders around the country faced similar challenges. | Of course, much of the recent choppiness in financial markets is tied to fears about the economic fallout of the pandemic, as people around the country shelter in place. But the sudden scattering of many of Wall Street’s traders from their hubs in Lower and Midtown Manhattan and toward a honeycomb of home offices and emergency backup locations introduced an element of discombobulation that few firms had prepared for. Traders around the country faced similar challenges. |
| Mehmet Kinak, the global head of systematic trading at T. Rowe Price, an asset management company, used to sit with a group of about a dozen traders on the seventh floor of his company’s headquarters in Baltimore. Past the sea of screens — traders typically had three or four at their desks — were views of the National Aquarium and Camden Yards, the home of the Orioles. | Mehmet Kinak, the global head of systematic trading at T. Rowe Price, an asset management company, used to sit with a group of about a dozen traders on the seventh floor of his company’s headquarters in Baltimore. Past the sea of screens — traders typically had three or four at their desks — were views of the National Aquarium and Camden Yards, the home of the Orioles. |
| Now, Mr. Kinak logs in from his home office — a small room in the basement of his Elk Ridge, Md., residence. Instead of engaging in constant chatter, his group connects via live chat tools such as Webex and Symphony. He’s noticed a slight slowdown in the pace of trading with partners on Wall Street as well, which he attributes to a combination of wild swings in markets and the transition to working from home. | Now, Mr. Kinak logs in from his home office — a small room in the basement of his Elk Ridge, Md., residence. Instead of engaging in constant chatter, his group connects via live chat tools such as Webex and Symphony. He’s noticed a slight slowdown in the pace of trading with partners on Wall Street as well, which he attributes to a combination of wild swings in markets and the transition to working from home. |
| “It just takes a little bit more time,” said Mr. Kinak. “But incrementally, it adds up.” | “It just takes a little bit more time,” said Mr. Kinak. “But incrementally, it adds up.” |
| The global financial system is intricate and highly complex, made up of thousands of companies — banks, hedge funds, asset managers, trading specialists — that buy and sell trillions of dollars in assets like stocks, bonds and currencies for themselves or their clients. To do so, companies invest heavily in technology and have elaborate setups meant to simplify communication between trading desks, analysts and clients. Milliseconds make a difference in this environment, because prices can change swiftly. | The global financial system is intricate and highly complex, made up of thousands of companies — banks, hedge funds, asset managers, trading specialists — that buy and sell trillions of dollars in assets like stocks, bonds and currencies for themselves or their clients. To do so, companies invest heavily in technology and have elaborate setups meant to simplify communication between trading desks, analysts and clients. Milliseconds make a difference in this environment, because prices can change swiftly. |
| Some of this activity is deemed so important that President Trump last month declared banking employees “essential” to the functioning of the U.S. economy and exempted them from orders to stay at home or stop working. Some Wall Street employees are still going into the office — especially those on trading floors where activity is both highly regulated and customized, and difficult to replicate at home. | Some of this activity is deemed so important that President Trump last month declared banking employees “essential” to the functioning of the U.S. economy and exempted them from orders to stay at home or stop working. Some Wall Street employees are still going into the office — especially those on trading floors where activity is both highly regulated and customized, and difficult to replicate at home. |
| Troy Rohrbaugh, the head of global markets at JPMorgan Chase recalled how, one day in mid-March, when the market was swinging wildly, a large client needed to sell a significant chunk of bonds. Mr. Rohrbaugh, who was in his office at the bank’s Midtown headquarters, stepped onto the trading floor to confer with a couple of traders and a salesman. | Troy Rohrbaugh, the head of global markets at JPMorgan Chase recalled how, one day in mid-March, when the market was swinging wildly, a large client needed to sell a significant chunk of bonds. Mr. Rohrbaugh, who was in his office at the bank’s Midtown headquarters, stepped onto the trading floor to confer with a couple of traders and a salesman. |
| “We were done and dusted and shelling a price to a client in two minutes, three minutes,” he said. “Can you imagine that conversation taking 30 minutes or longer in markets that are moving as rapidly as they are now?” He continues to work from the office despite a recent outbreak of Covid-19 there. | “We were done and dusted and shelling a price to a client in two minutes, three minutes,” he said. “Can you imagine that conversation taking 30 minutes or longer in markets that are moving as rapidly as they are now?” He continues to work from the office despite a recent outbreak of Covid-19 there. |
| Another company, Citadel Securities, a Chicago “market maker” that matches buyers and sellers, booked a hotel — the luxury Four Seasons resort in Palm Beach, Fla. — and set up a makeshift trading floor so it could continue to do business uninterrupted. | Another company, Citadel Securities, a Chicago “market maker” that matches buyers and sellers, booked a hotel — the luxury Four Seasons resort in Palm Beach, Fla. — and set up a makeshift trading floor so it could continue to do business uninterrupted. |
| But for the most part, financial companies have put in effect strict work-from-home policies. Traders say the impact of the transition has been the greatest in less transparent markets such as corporate bonds. Unlike stock markets, where exchanges provide real-time prices that traders can act upon at any moment, prices in so-called over-the-counter markets for bonds are often negotiated during each trade. | But for the most part, financial companies have put in effect strict work-from-home policies. Traders say the impact of the transition has been the greatest in less transparent markets such as corporate bonds. Unlike stock markets, where exchanges provide real-time prices that traders can act upon at any moment, prices in so-called over-the-counter markets for bonds are often negotiated during each trade. |
| On a typical trading desk, bond traders can gather price information, haggle with brokers and clients or check in with analysts and sales representatives with a few shouts or by pressing a button. By contrast, working from home requires phone calls and instant messages, which take more time, even as markets continue to trade and prices fluctuate before a decision can be made. | On a typical trading desk, bond traders can gather price information, haggle with brokers and clients or check in with analysts and sales representatives with a few shouts or by pressing a button. By contrast, working from home requires phone calls and instant messages, which take more time, even as markets continue to trade and prices fluctuate before a decision can be made. |
| “Trading floors are designed the way they are to most effectively and most efficiently socialize information,” said Joshua Younger, a bond market analyst at JPMorgan. Running a trading operation from home is like “a football team running a play by text,” he said. “It wouldn’t work as well. All the information would get conveyed, but not at the speed and the pace that’s required.” | “Trading floors are designed the way they are to most effectively and most efficiently socialize information,” said Joshua Younger, a bond market analyst at JPMorgan. Running a trading operation from home is like “a football team running a play by text,” he said. “It wouldn’t work as well. All the information would get conveyed, but not at the speed and the pace that’s required.” |
| Government officials who monitor the smooth functioning of markets, and traders and investors who depend on it, note that slower connections have created lags leading to uncertainty — say, about whether a buy or sell order is coming through. | Government officials who monitor the smooth functioning of markets, and traders and investors who depend on it, note that slower connections have created lags leading to uncertainty — say, about whether a buy or sell order is coming through. |
| Updated June 30, 2020 | |
| Common symptoms include fever, a dry cough, fatigue and difficulty breathing or shortness of breath. Some of these symptoms overlap with those of the flu, making detection difficult, but runny noses and stuffy sinuses are less common. The C.D.C. has also added chills, muscle pain, sore throat, headache and a new loss of the sense of taste or smell as symptoms to look out for. Most people fall ill five to seven days after exposure, but symptoms may appear in as few as two days or as many as 14 days. | |
| Scientists around the country have tried to identify everyday materials that do a good job of filtering microscopic particles. In recent tests, HEPA furnace filters scored high, as did vacuum cleaner bags, fabric similar to flannel pajamas and those of 600-count pillowcases. Other materials tested included layered coffee filters and scarves and bandannas. These scored lower, but still captured a small percentage of particles. | Scientists around the country have tried to identify everyday materials that do a good job of filtering microscopic particles. In recent tests, HEPA furnace filters scored high, as did vacuum cleaner bags, fabric similar to flannel pajamas and those of 600-count pillowcases. Other materials tested included layered coffee filters and scarves and bandannas. These scored lower, but still captured a small percentage of particles. |
| A commentary published this month on the website of the British Journal of Sports Medicine points out that covering your face during exercise “comes with issues of potential breathing restriction and discomfort” and requires “balancing benefits versus possible adverse events.” Masks do alter exercise, says Cedric X. Bryant, the president and chief science officer of the American Council on Exercise, a nonprofit organization that funds exercise research and certifies fitness professionals. “In my personal experience,” he says, “heart rates are higher at the same relative intensity when you wear a mask.” Some people also could experience lightheadedness during familiar workouts while masked, says Len Kravitz, a professor of exercise science at the University of New Mexico. | A commentary published this month on the website of the British Journal of Sports Medicine points out that covering your face during exercise “comes with issues of potential breathing restriction and discomfort” and requires “balancing benefits versus possible adverse events.” Masks do alter exercise, says Cedric X. Bryant, the president and chief science officer of the American Council on Exercise, a nonprofit organization that funds exercise research and certifies fitness professionals. “In my personal experience,” he says, “heart rates are higher at the same relative intensity when you wear a mask.” Some people also could experience lightheadedness during familiar workouts while masked, says Len Kravitz, a professor of exercise science at the University of New Mexico. |
| The steroid, dexamethasone, is the first treatment shown to reduce mortality in severely ill patients, according to scientists in Britain. The drug appears to reduce inflammation caused by the immune system, protecting the tissues. In the study, dexamethasone reduced deaths of patients on ventilators by one-third, and deaths of patients on oxygen by one-fifth. | The steroid, dexamethasone, is the first treatment shown to reduce mortality in severely ill patients, according to scientists in Britain. The drug appears to reduce inflammation caused by the immune system, protecting the tissues. In the study, dexamethasone reduced deaths of patients on ventilators by one-third, and deaths of patients on oxygen by one-fifth. |
| The coronavirus emergency relief package gives many American workers paid leave if they need to take time off because of the virus. It gives qualified workers two weeks of paid sick leave if they are ill, quarantined or seeking diagnosis or preventive care for coronavirus, or if they are caring for sick family members. It gives 12 weeks of paid leave to people caring for children whose schools are closed or whose child care provider is unavailable because of the coronavirus. It is the first time the United States has had widespread federally mandated paid leave, and includes people who don’t typically get such benefits, like part-time and gig economy workers. But the measure excludes at least half of private-sector workers, including those at the country’s largest employers, and gives small employers significant leeway to deny leave. | The coronavirus emergency relief package gives many American workers paid leave if they need to take time off because of the virus. It gives qualified workers two weeks of paid sick leave if they are ill, quarantined or seeking diagnosis or preventive care for coronavirus, or if they are caring for sick family members. It gives 12 weeks of paid leave to people caring for children whose schools are closed or whose child care provider is unavailable because of the coronavirus. It is the first time the United States has had widespread federally mandated paid leave, and includes people who don’t typically get such benefits, like part-time and gig economy workers. But the measure excludes at least half of private-sector workers, including those at the country’s largest employers, and gives small employers significant leeway to deny leave. |
| So far, the evidence seems to show it does. A widely cited paper published in April suggests that people are most infectious about two days before the onset of coronavirus symptoms and estimated that 44 percent of new infections were a result of transmission from people who were not yet showing symptoms. Recently, a top expert at the World Health Organization stated that transmission of the coronavirus by people who did not have symptoms was “very rare,” but she later walked back that statement. | So far, the evidence seems to show it does. A widely cited paper published in April suggests that people are most infectious about two days before the onset of coronavirus symptoms and estimated that 44 percent of new infections were a result of transmission from people who were not yet showing symptoms. Recently, a top expert at the World Health Organization stated that transmission of the coronavirus by people who did not have symptoms was “very rare,” but she later walked back that statement. |
| Touching contaminated objects and then infecting ourselves with the germs is not typically how the virus spreads. But it can happen. A number of studies of flu, rhinovirus, coronavirus and other microbes have shown that respiratory illnesses, including the new coronavirus, can spread by touching contaminated surfaces, particularly in places like day care centers, offices and hospitals. But a long chain of events has to happen for the disease to spread that way. The best way to protect yourself from coronavirus — whether it’s surface transmission or close human contact — is still social distancing, washing your hands, not touching your face and wearing masks. | Touching contaminated objects and then infecting ourselves with the germs is not typically how the virus spreads. But it can happen. A number of studies of flu, rhinovirus, coronavirus and other microbes have shown that respiratory illnesses, including the new coronavirus, can spread by touching contaminated surfaces, particularly in places like day care centers, offices and hospitals. But a long chain of events has to happen for the disease to spread that way. The best way to protect yourself from coronavirus — whether it’s surface transmission or close human contact — is still social distancing, washing your hands, not touching your face and wearing masks. |
| A study by European scientists is the first to document a strong statistical link between genetic variations and Covid-19, the illness caused by the coronavirus. Having Type A blood was linked to a 50 percent increase in the likelihood that a patient would need to get oxygen or to go on a ventilator, according to the new study. | A study by European scientists is the first to document a strong statistical link between genetic variations and Covid-19, the illness caused by the coronavirus. Having Type A blood was linked to a 50 percent increase in the likelihood that a patient would need to get oxygen or to go on a ventilator, according to the new study. |
| The unemployment rate fell to 13.3 percent in May, the Labor Department said on June 5, an unexpected improvement in the nation’s job market as hiring rebounded faster than economists expected. Economists had forecast the unemployment rate to increase to as much as 20 percent, after it hit 14.7 percent in April, which was the highest since the government began keeping official statistics after World War II. But the unemployment rate dipped instead, with employers adding 2.5 million jobs, after more than 20 million jobs were lost in April. | The unemployment rate fell to 13.3 percent in May, the Labor Department said on June 5, an unexpected improvement in the nation’s job market as hiring rebounded faster than economists expected. Economists had forecast the unemployment rate to increase to as much as 20 percent, after it hit 14.7 percent in April, which was the highest since the government began keeping official statistics after World War II. But the unemployment rate dipped instead, with employers adding 2.5 million jobs, after more than 20 million jobs were lost in April. |
| If air travel is unavoidable, there are some steps you can take to protect yourself. Most important: Wash your hands often, and stop touching your face. If possible, choose a window seat. A study from Emory University found that during flu season, the safest place to sit on a plane is by a window, as people sitting in window seats had less contact with potentially sick people. Disinfect hard surfaces. When you get to your seat and your hands are clean, use disinfecting wipes to clean the hard surfaces at your seat like the head and arm rest, the seatbelt buckle, the remote, screen, seat back pocket and the tray table. If the seat is hard and nonporous or leather or pleather, you can wipe that down, too. (Using wipes on upholstered seats could lead to a wet seat and spreading of germs rather than killing them.) | If air travel is unavoidable, there are some steps you can take to protect yourself. Most important: Wash your hands often, and stop touching your face. If possible, choose a window seat. A study from Emory University found that during flu season, the safest place to sit on a plane is by a window, as people sitting in window seats had less contact with potentially sick people. Disinfect hard surfaces. When you get to your seat and your hands are clean, use disinfecting wipes to clean the hard surfaces at your seat like the head and arm rest, the seatbelt buckle, the remote, screen, seat back pocket and the tray table. If the seat is hard and nonporous or leather or pleather, you can wipe that down, too. (Using wipes on upholstered seats could lead to a wet seat and spreading of germs rather than killing them.) |
| If you’ve been exposed to the coronavirus or think you have, and have a fever or symptoms like a cough or difficulty breathing, call a doctor. They should give you advice on whether you should be tested, how to get tested, and how to seek medical treatment without potentially infecting or exposing others. | If you’ve been exposed to the coronavirus or think you have, and have a fever or symptoms like a cough or difficulty breathing, call a doctor. They should give you advice on whether you should be tested, how to get tested, and how to seek medical treatment without potentially infecting or exposing others. |
| Traders typically have three to four screens they use to keep a constant eye on price changes, communications from trading partners and market data sources. But at home, most probably have a laptop and another monitor, so more toggling and clicking is required to nail down the maturity schedule of a bond or call up the daily trading volume on a stock. | Traders typically have three to four screens they use to keep a constant eye on price changes, communications from trading partners and market data sources. But at home, most probably have a laptop and another monitor, so more toggling and clicking is required to nail down the maturity schedule of a bond or call up the daily trading volume on a stock. |
| The phone is another matter. Traders usually use a specialized telephone known as a “turret,” with preprogrammed keys to connect with important clients and trading partners. While there are electronic solutions that would allow traders to replicate their turrets online at home, many seem to have reverted to simply looking up numbers and using their cellphones to connect — another small but significant slowdown in communications. | The phone is another matter. Traders usually use a specialized telephone known as a “turret,” with preprogrammed keys to connect with important clients and trading partners. While there are electronic solutions that would allow traders to replicate their turrets online at home, many seem to have reverted to simply looking up numbers and using their cellphones to connect — another small but significant slowdown in communications. |
| Jeff Warren, a Goldman Sachs banker who helped oversee the sale of $600 million in bonds on March 30 for the restaurant chain Yum Brands, found it much more onerous to deal with hundreds of investors from the attic of his mother-in-law’s home in Long Island than from the office. He said he joked to colleagues that while his Downtown Manhattan office has a phone turret that allows 600 calls to come through at once, he is barely able to patch together two lines on a desk phone while working remotely. | Jeff Warren, a Goldman Sachs banker who helped oversee the sale of $600 million in bonds on March 30 for the restaurant chain Yum Brands, found it much more onerous to deal with hundreds of investors from the attic of his mother-in-law’s home in Long Island than from the office. He said he joked to colleagues that while his Downtown Manhattan office has a phone turret that allows 600 calls to come through at once, he is barely able to patch together two lines on a desk phone while working remotely. |
| The coronavirus outbreak threw a wrench into the continuity planning that many Wall Street companies had put in place since at least the Sept. 11 terrorist attacks. Those plans were largely built around the idea that if trading at a bank headquarters was knocked off-line, groups of traders would decamp to satellite trading floors outside the radius of whatever disaster had befallen New York. But those plans quickly became unworkable, given the dangers of infections from coronavirus for virtually all office work that puts people close to one another. | The coronavirus outbreak threw a wrench into the continuity planning that many Wall Street companies had put in place since at least the Sept. 11 terrorist attacks. Those plans were largely built around the idea that if trading at a bank headquarters was knocked off-line, groups of traders would decamp to satellite trading floors outside the radius of whatever disaster had befallen New York. But those plans quickly became unworkable, given the dangers of infections from coronavirus for virtually all office work that puts people close to one another. |
| “This is really not the disaster that they had planned for,” said Daniel Beunza, a business professor at the City University of London, who has studied and recently written a book on bank trading floor culture. | “This is really not the disaster that they had planned for,” said Daniel Beunza, a business professor at the City University of London, who has studied and recently written a book on bank trading floor culture. |
| The trading floor at Driehaus Capital Management, a boutique investment manager, occupies the second floor of a 19th century mansion in Chicago. On a typical day, a handful of traders — with four screens apiece — scour the markets for entry and exit points on the stocks and bonds the portfolio managers have earmarked for buying or selling. | The trading floor at Driehaus Capital Management, a boutique investment manager, occupies the second floor of a 19th century mansion in Chicago. On a typical day, a handful of traders — with four screens apiece — scour the markets for entry and exit points on the stocks and bonds the portfolio managers have earmarked for buying or selling. |
| Now, all of the firm’s traders are working from home but the disruption has not been significant, said Jason Vedder, director of trading. In recent years, Driehaus had bolstered its ability to allow traders to work from home for a number of reasons — not least the ability to stay home during Chicago’s awful winter weather. | Now, all of the firm’s traders are working from home but the disruption has not been significant, said Jason Vedder, director of trading. In recent years, Driehaus had bolstered its ability to allow traders to work from home for a number of reasons — not least the ability to stay home during Chicago’s awful winter weather. |
| That’s not to say nothing has changed. Instead of hearing nonstop chatter, the firm’s traders have an open Zoom video meeting going throughout the day, allowing them to mimic the ease of in-person communication. They also connect to Bloomberg, where they chat with their counterparts at Wall Street banks and execute trades. | That’s not to say nothing has changed. Instead of hearing nonstop chatter, the firm’s traders have an open Zoom video meeting going throughout the day, allowing them to mimic the ease of in-person communication. They also connect to Bloomberg, where they chat with their counterparts at Wall Street banks and execute trades. |
| Mr. Vedder himself works from a third-floor office next to his son’s room in his home on the city’s North Side. He has hard-wired his desktop to increase its speed, and a 150-foot cable spills out of his office and down the stairwell to the modem in the basement. | Mr. Vedder himself works from a third-floor office next to his son’s room in his home on the city’s North Side. He has hard-wired his desktop to increase its speed, and a 150-foot cable spills out of his office and down the stairwell to the modem in the basement. |