Stock and options exchanges are losing $1 million in transaction fees each day they are closed because of Hurricane Sandy, according to an industry analyst's estimate.
Richard Repetto, a principal at Sandler O'Neill, said the giant storm would likely cost NYSE Euronext, Nasdaq OMX Group and the Chicago Board Options Exchange $1 million in net trading revenues each day they are closed.
But the closures of the exchanges Monday and Tuesday would likely cost a loss of a penny or less of earnings-per-share for the public companies that operate the exchanges, Repetto said in a note.
The New York Stock Exchange and Nasdaq, both of which were closed Monday and Tuesday, are testing systems in anticipation of a possible reopening on Wednesday.
Hurricane Sandy was the first weather event to close the Big Board since Hurricane Gloria did so in 1985.