Update 09:39 | States U.S. market share showed again Thursday that it remains vulnerable to a break technology, even as regulators and market operators to work to keep up with the electronic trading. and greater speeds.Last issue the close of trading in the NASDAQ market, and more than 3,000 shares - including some of the most popular among investors as Apple and Google - for more than three hours in the afternoon Thursday.
Interruption of the Stock Exchange of Thailand, the second largest after the New York Stock Exchange, reverberated up and down Wall Street affect other markets as investors cautiously backed brokers scrambling to trade other people find that they do not. can perform the trades in the dark about the prices in the market Nasdaq.
"It is every man - no one can trade," said Manoj Narang, chief executive of Tradeworx said in the afternoon. "I've never seen anything like this."
Some expressed relief that the problem comes in the month of August is usually a slow time for Wall Street.
"We did not lose any money, but we also do very little off today," a Wall Street executive at the company who asked not to be named, said.
Nasdaq officials said, and be notified of problems with the published information and that the cause had been "identified and addressed.".
Breakdown came just two days after Goldman Sachs accidentally sent out a barrage of commercial exchange scattering offenders who choose to buy and sell. Two extended episodes have questioned the reliability and integrity of financial markets, the company depends on raising money and trust with the American saving for their retirement.
Over the past year, the market launch of the eagerly awaited Facebook was marred by delays and technical problems. In May 2010, a malfunction of the computer that is accused. "Flash crash," when the chaos of the shares fell $ 1 or less and the Dow Jones industrial average plunged more than 700 points in a few minutes.
While regulators and market participants have taken several steps to strengthen their systems with this week pointed out that the flaw in the market has not yet been repaired, and probably true. to be getting worse.
"You have a lot of Rube Goldberg system," Gene Noser, co-founder of a brokerage firm, said Abel / Noser "We just put the patch without attacking the underlying problem.".
Persistence of technical flaws - each seems to come from a different part of the system - has been blamed on the complexity of the technology, trading and distribution of the market itself. In contrast with New York Stock Exchange on the Nasdaq today, with only 13 people in the exchange of business competition, rapidly changing, and there is a low margin.
Frustrated with fluctuations represent the immediate challenge for regulators to supervise the stock market, the Securities and Exchange Commission and the new president of Mary Jo White.
Thursday evening, Ms. White said in a statement that paralyzed the Nasdaq is "serious and should strengthen our commitment to combine the vulnerability of the technology and other participants in the market."
She said she will push forward with proposed regulations that will soon be added to the test and security software for trading. Resistance so far are those faced by the exchange, Ms. White said she would. "Not long ago, a meeting of leaders of the exchanges and other market participants, the key to accelerate the ongoing efforts to strengthen our market.".
Despite the turmoil, the stock ended the injury on Thursday. The NASDAQ Composite Index increased slightly after trading back about 3:30 and finished the day up 1.1 percent for much of the afternoon, the index is moved horizontally across the screen because there is no stock. in the index are traded.
The Dow rose 66 points, or 0.4 percent, to close at 14,963.74 and the Standard & Poor 's 500 stock index rose 14 points, or 0.9 percent, to 1,656.96.
Interest rates in the bond market yields have not changed when 10-year Treasury note remained at 2.89, and the price of the 10-year Treasury note is the same as 96 late on Wednesday 20/32, but the. Join the many industry said it would take time to quantify the loss of the incident. For banks, the inability to unexpected trade stocks, particularly disrupted sophisticated trading strategies that rely on the ability to buy and sell quickly in several markets at the same time.
Dealer broker trading revenue lost that should have been incurred. Trading volume in shares listed on the Nasdaq exchange fell 34 percent, or $ 16 billion of it had been the day before.
NASDAQ were facing skepticism in the industry through the management of Facebook Initial Offering, which was not completed due to defects in different parts of Nasdaq's computer systems.
Market operators to pay $ 10 million for the mistakes of the first offering. But the number of banks felt they had not been fairly compensated for the damages they have suffered as a result of the error operation of the market.
Participants industry was not satisfied with the way the senior management Nasdaq and chief executive, Robert Greifeld, withdrew from the public eye immediately after the issue of the description of some of the things. occurred.
Arthur Levitt, former chairman of the Securities and Exchange Commission said that Nasdaq has made the same mistake after the cessation of trading on Thursday, when Mr. Greifeld and Executive Nasdaq other patient again from the public commented. accident
"The worst of all is the lack of disclosure - lack of transparency," Mr. Levitt said. "This is inexcusable.".
NASDAQ was the first to send out a warning that it was 12:14 pm said traders reluctant to sell all the shares listed on the exchange until further notice. Implementation of marketing, said at that point that the problem is a result of problems with the trading system are recorded. Nasdaq halted trading in all markets to choose from.
Under normal conditions, the exchange with vendors can meet the command of them to exchange for other public, but due to problems with the feed from the price to acquire all Exchange halted trading in the stock market Nasdaq. on Thursday.
During the suspension, the Wall Street firm trying to determine what to do with the orders for stocks listed on the NASDAQ.
"There is no transparency for investors at this point," said David Warhoftig Highside Capital Management, Managing Director, said that during the disruption. "We were able to get trades that could happen a few times when I first started this. But now we are not able to do what ".
Shortly after the start executives joined Nasdaq stock market phones open to other regulators and they talked over the phone with Mr. Greifeld spoke with Ms. White, Office of A. SEC chief
The traders complained that Nasdaq few details of what happened and how to fix the problem is solved.
Jonathan Corpina trader at Meridian Equity Partners on the floor of the New York Stock Exchange, said he has many clients calling him. "Looking for answers and explanations because they can not get through to the Nasdaq on a mobile phone".
Shortly after 14:00, Nasdaq said in a notification that trading will start again at 2:45 pm but was pushed back and the full back just shortly before the trading day to close at 16. 00th.
One can not trade in shares on the afternoon of Thursday the parent company of the NASDAQ, Nasdaq OMX's shares on the open for trading off their fell 3.42 percent.
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