Which U.S. stock exchange was the main setting for the 1987 Black Monday trading breakdown?
Answer
New York Stock Exchange
The New York Stock Exchange was the main setting for the 1987 Black Monday trading breakdown.
On October 19, 1987, selling overwhelmed the NYSE and the Dow Jones Industrial Average fell 22.6%. The exchange remained open, but trading became severely disrupted as orders accumulated faster than many systems and market participants could process them.
The crash was global, and other exchanges recorded steep losses. It was not simply a problem confined to New York: investor behavior, portfolio insurance strategies, international connections, and uncertainty about prices all contributed to the turmoil.
The Nasdaq also suffered heavily, but it is a separate exchange and index ecosystem. After the crisis, U.S. regulators introduced market-wide circuit breakers and other procedures intended to pause trading during exceptionally rapid declines.