Nasdaq Issues Resolved, But There Are No Guarantees
Trading was halted last Thursday by Nasdaq OMX Group Inc. (NASDAQ:NDAQ) for three hours in order to protect market integrity after a malfunction left some investors without stock quotes. Chief Executive Officer Robert Greifeld later told CNBC on Friday that while the technical issues have been resolved, there is no guarantee that there will be no future problems.
All Nasdaq transactions were frozen just after noon on Thursday after bad connectivity between an unidentified exchange and Nasdaq’s securities information processor (SIP) caused a “degradation in the ability of the SIP to disseminate consolidated quotes and trades,” Nasdaq revealed in a statement. However, one person with direct knowledge of the incident told Bloomberg that the exchange was NYSE Arca.
Issues with NYSE Arca began appearing a little after 10 a.m. when it began to alert traders to problems — specifically, that it was having issues routing orders in certain Nasdaq-listed securities. Ten minutes later, the exchange said that the problem was resolved, but live orders for those securities were then canceled twenty minutes later, with quoting not resuming until 11:16 a.m. Then, thirty minutes later NYSE Arca stopped trading, around 12:14 p.m., at the request of Nasdaq.