NYSE bell
Source: NYSE
The day after a major trading glitch at the New York Stock Exchange, the NYSE released a statement on what happened: “The root cause was determined to be a manual error associated with the exchange’s disaster recovery configuration earlier in the day.”
That’s all they are saying. In plain words, it appears that they tested a “disaster recovery configuration” that did not include the use of floors, and it did not reset.
It fits the facts as we know them.
Traders noted that both designed market makers (DMMs) and floor brokers have been excluded from the order book that is used to create the initial print. No early prints were made available at dozens of big-name companies. “It was almost as if the business was launched without the platform’s involvement,” one observer told me, speaking on condition of anonymity.
What we do know is that dozens of stocks opened at prices significantly above or below their previous day’s closing price. Most were halted shortly after the opening under rules designed to reduce excessive volatility, and most reopened five to 10 minutes after the opening at prices very close to Monday’s closing prices. Many orders to buy and sell stocks were not included in the order book that sets the opening price, and those affected shares did not appear in the initial auction print.
The confusion was further compounded by the NYSE’s announcement late Tuesday that some open trades would be busted, but not others. Many people are trying to find out how much money they might have lost yesterday.
(TagstoTranslate)Markets(T)Investment Strategy(T)Business News