An NYSE spokesman detailed the decision for GlobeSt.com, saying that in light of the city's Sept. 11-induced decision to back down on its original deal with the exchange, plans for a new Downtown trading floor have been scrapped. The arrangement had included a $1 billion subsidy for a trading floor topped by a 900-foot office tower at 23 Wall St., across the street from the NYSE's current headquarters.

Financial constraints and the current lack of enthusiasm for tall buildings put the $1.6-billion deal on shaky ground, the spokesman said. Talks bogged down earlier this year when Grasso nixed the office tower and Mayor Bloomberg asked the exchange to double its financial commitment to the project. Yesterday, Grasso pulled the plug on the entire deal.

That plan received considerable criticism from advocacy groups across the city since it first came to light. Opponents said too little public input and too much closed-door negotiating made the process suspect. In addition, many questioned the need for a new trading floor and protested the amount of the subsidy. Among the plan's most vocal critics is Bettina Damiani, project director for watchdog group Good Jobs New York. "If, indeed, the deal has fallen apart because the Bloomberg administration has not budged on their last offer, then kudos to the mayor," she tells GlobeSt.com.