Nasdaq fixes a technical glitch

Nasdaq’s trading system outage cancels thousands of orders, provides inaccurate clearing information

Nasdaq fixed a technical glitch in its trading system on Wednesday that disrupted thousands of stock orders,
resulting in the cancellation of some and the provision of inaccurate clearing information for others.

Topic

Details

Analysis

Details

The problem began around 2:30 p.m. ET and affected trading in New York, including the FIX/RASH order processing services.

Nasdaq attempted to fix the problem but was unable to resolve it completely before the close of trading.
After hours, the decision was made to shut down the order processing system,
halt all new orders, and cancel any open customer orders.

Nasdaq said that inaccurate clearing information was provided and that it reversed trading for orders issued by the order processing system during the period of the technical glitch.
It also re-submitted corrected trades to the Nasdaq Stock Exchange.
It said that BX and PSX trades related to the T+1 settlement (where ownership of the security is transferred from seller to buyer one day after the trade is executed) will also be corrected.

The company concluded its statement by saying that it “is confident that this corrective action will fully address the issue,” adding that the index will be ready to resume trading on Thursday.

Analysis

The Nasdaq glitch is a reminder of the risks inherent in relying on complex technological systems.
While the company has taken steps to address the problem,
it is possible that there could be a long-term impact on investor confidence in the index.

It is important to note that the glitch did not affect all stock orders.
However, any delay or inaccuracy in information can have a negative impact on the market.

Nasdaq fixes a technical glitch

Nasdaq fixes a technical glitch

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