[ by Melanie Gretchen ]

Wall Street holds no candle to Hurricane Sandy.

The hurricane dealt another blow to the financial industry, closing U.S. markets for a second day and vacating lower Manhattan in anticipation of the storm.  As Hurricane Sandy made her way toward the New York area, the exchanges made their positions known:

• the New York Stock Exchange, the Nasdaq stock market and BATS Global Markets said in separate statements that they have agreed to close, after consulting with other exchanges and clients
• the NYSE plans to operate on Wednesday, pending developments in weather conditions
• SIFMA, an industry trade group, recommended that United States bond markets stay closed on Tuesday as well.

Has the city that never sleeps ground to a halt? Apparently not.  Amid regard for employees' safety, Wall Street has managed to maintain work via:

• exchanges: skeleton crews to run critical operations
• Wall Street: employees working remotely

Indeed, the stoppage may cost Wall Street a pretty penny, according to Richard Repetto, an analyst at Sandler O'Neill & Partners, who said that stock and option exchanges would lose about $1 million in transaction fees for every day that they are closed.

For its part, Goldman has advised employees in an internal memo to stay home on Tuesday, and that its offices at 200 West St. and 30 Hudson St. would be closed.  The firm is relying on operations in London, Salt Lake City, and other cities to keep its businesses running.

Here's the latest memo from Goldman's chief administrative officer, Jeffrey Schroeder:

October 29, 2012
Hurricane Sandy - Business Operations on Tuesday, October 30
Hurricane Sandy is expected to intensify this evening. Financial markets will be closed on Tuesday and transportation will remain suspended indefinitely in New York City and other locations affected by the storm. As a result, 200 West and 30 Hudson will be closed tomorrow.

The firm's Business Continuity Plans will remain active throughout Tuesday, leveraging our teams in London, Salt Lake City, and other offices around the world.

Unless otherwise instructed by divisional management, you should plan to stay at home tomorrow. The safety and well-being of our people remains our highest priority. We ask you to be mindful of communications from municipal and state authorities, your divisional leadership and your managers.

We will provide further updates as necessary and request that you pay special attention to messages from the Office of Global Security (OGS). Please also visit the OGS site for more information on Hurricane Preparedness.

Thank you for your cooperation.

Jeffrey W. Schroeder

For further details, go to [Dealbook, 10/29/12].