Half of US stockmarket brought to halt by Nasdaq glitch

Pensions

A glitch between Nasdaq and a popular trading platform meant that half of the US stockmarket, including Apple and Facebook, was frozen for hours yesterday.

The Nasdaq exchange, which is the second-largest stock exchange in the US and the world’s largest electronic stockmarket, was down for three hours after a “technical issue” led a problem distributing stock price quotes.

According to Bloomberg, there was a disruption between the data processing subsidiary of Nasdaq Stock Market and trading platform NYSE Arca, where around 11 per cent of US share volume occurs. The problem meant that half of the US market ground to a standstill.

The US Securities and Exchange Commission plans to meet with Nasdaq to discuss the outage.

SEC chairwoman Mary Jo White said: “Today’s interruption in trading, while resolved before the end of the day, was nonetheless serious and should reinforce our collective commitment to addressing technological vulnerabilities of exchanges and other market participants.”

Last year, Nasdaq paid a $10m penalty to settle federal civil charges with US regulators after trading in the floatation of Facebook was disrupted by issues with its systems and decisions. It also paid a $62m to investment firms that lost money because of the problems.