logo
Sign in or Register

Already a member?

Sign in

Or sign in with your account on:

Not a member yet?

Register
    

Nasdaq Ceases Trading; Expected to Go Back on at 3:10 EST *UPDATE*

  +Follow August 22, 2013 11:53AM
Share:
Tickers Mentioned:

For the first time in years the Nasdaq ceased trading entirely due to a technical glitch, and investors expressed worry that the far-reaching implications could shake investor confidence in the market.

Trading abruptly ceased at 12:14 Eastern Time, as the exchange was having trouble distributing stock quotes. The first signs of the problem appeared 20 minutes prior, when “momentary interruptions” first began appearing.

In January 2013, the Nasdaq experienced a minor glitch for 15 minutes, and trading was halted for 10 minutes.

The last significant shut down of the Nasdaq in recent times was during Facebook Inc.’s (FB) disastrous IPO in May 2012. The company that owns Nasdaq, Nasdaq OMX Group (NDAQ) ended up paying out over $62 million to investors negatively affected by the shutdown.

A glitch of this severity has not happened in quite some time, though. Christopher Nagy, president of consultancy firm KOR Trading and a former head of trading at TD Ameritrade said, "I can't remember this happening in recent memory."

The last time the Nasdaq experienced a total shutdown of this magnitude was probably in December 1987, when a stray squirrel caused a power failure in Trumbull, Conn. that shut down the Nasdaq system for 82 minutes.

The financial implications of the most current glitch are not yet known.

Nasdaq expects trading to resume at 3:10 PM eastern time.

(image courtesy of Wikipedia Commons)

*****UPDATE******

Trading resumed as expected at 3:10 PM EST on Aug. 22. Nasdaq issued the following statement regarding the trading shutdown:

Earlier this afternoon, NASDAQ OMX became aware that price quotes were
not being disseminated by the Securities Industry Processor (SIP),
which consolidates and disseminates all prices for the industry.

Responding to the SIP issue, in order to protect the integrity of the
markets, NASDAQ OMX issued a regulatory halt for all trading in
NASDAQ-listed securities. In the first 30 minutes, technical issues
with the SIP were resolved. For the remaining period of time, NASDAQ
OMX, other exchanges, regulators and market participants coordinated
with each other to ensure an orderly re-opening of trading in
NASDAQ-listed securities. Trading resumed and the balance of the
trading day finished in normal course.

NASDAQ OMX will work with other exchanges that are members of the SIP
to investigate the issues of today, and we will support any necessary
steps to enhance the platform.

DISCLOSURE: The views and opinions expressed in this article are those of the authors, and do not represent the views of equities.com. Readers should not consider statements made by the author as formal recommendations and should consult their financial advisor before making any investment decisions.


Liked What You Read? Join Equities.com as a contributor and get eyeballs on your content FOR FREE!

				
				
  +Follow August 22, 2013 11:53AM
Share:

Comments

 

blog comments powered by Disqus

About us

Equities.com is the most advanced interactive online social ecosystem for the financial industry, serving as a resource center and next-generation communication platform that connects self-directed investors with public issuers, market experts, and professional service providers and vendors. Registered members can leverage our exclusive proprietary research tools such as the Small-Cap Stars, which outperformed 90% of all small-cap mutual funds, and robust do-it-yourself E.V.A. research reports. The Equities.com Issuer Dashboard is the ideal tool to communicate and manage investor awareness campaigns to the investment community, as well as to access valuable resources to help your company grow.

Market Data powered by QuoteMedia.
Copyright © QuoteMedia. Data delayed 15 minutes unless otherwise indicated. Terms of Use.