Computer Glitch Halts NASDAQ Options Trading
It seems that every few months, computers are being hacked or experience some sort of glitch. Just a few days ago, we saw the Goldman Sachs options glitch. Today, we get another glimpse of how billions of dollars can be affected because of “minor” computer glitches.
Via NASDAQ’s system alert messages:
|13:32:48 ET||PSX||Following resumption in trading on NASDAQ all open orders on PSX will be eligible for trading. Firms who wish to cancel their orders may do so prior to the resumption of trading.|
|13:27:05 ET||BX||Following resumption in trading on NASDAQ all open orders on BX will be eligible for trading. Firms who wish to cancel their orders may do so prior to the resumption of trading.|
|12:59:29 ET||NASDAQ||NASDAQ intends to re-open trading in all Tape C securities with a halt cross with a 5-minute quote only period starting at a time to be determined. NASDAQ will not be cancelling open orders on the book. Customers who wish to cancel their orders may do so and any customer who wishes to not participate in the re-opening should cancel their orders prior to the resumption of trading. Additionally, NASDAQ will clear all stale quotes from the UTP SIP prior to the commencement of trading.|
|12:40:40 ET||NASDAQ Options
|NASDAQ Options Market (PHLX, NOM and BX Options) System Update:Due to the ongoing equity SIP issue NASDAQ (PHLX, NOM and BX Options)reccommends that firms route all open orders away. If firms need assistance with cancling orders please contact Market Operations at 215-496-1571.|
|12:32:34 ET||PHLX||NASDAQ OMX PHLX has halted trading in Options as of 12:20:18|
|12:30:48 ET||PHLX||We have halted trading in Options as of 12:20:18|
|12:30:14 ET||NASDAQ Options||NASDAQ Options Market (NOM) has halted trading at 12:22:26. Please contact Market Operations at (215) 496-1571 if you have any further questions.|
|12:28:26 ET||PHLX||We have halted trading in options as of 12:20:18 .|
|12:23:43 ET||Post – Trade||The UTP SIP is currently investigating an issue. All UQDF channels are not disseminating data. The UTP SIP will advise.|
|12:22:14 ET||NASDAQ Options
|ALL NASDAQ Options Markets (PHLX, NOM and BX Options) is halting trading due to the equity SIP issue.Please contact Market Operations at 215-496-1571 if you have any questions|
|Due to issues with quote dissemination to the UTP SIP, NASDAQ BX and PSX are halting trading in Tape C securities until further notice.|
|12:14:03 ET||NASDAQ||Due to an issue at the UTP SIP affecting quote dissemination, NASDAQ is halting trading in all Tape C securities until further notice.|
|Please be advised NASDAQ, NASDAQ BX, and NASDAQ PSX are currently experiencing issues with quote submission to the UTP SIP.|
|11:45:53 ET||Post – Trade||The UTP SIP experienced momentary interruptions in quote dissemination across all UQDF Channels from approximately 10:57 to 11:03. All channels are now operating normally.|
Nasdaq said in alerts posted on its website that trading on its exchanges had been halted amid issues at its Securities Information Processor, the feed that disseminates stock quotes. The second-biggest stock market operator in the U.S. halted transactions in what it calls Tape C, which comprises all Nasdaq-listed securities.
Buying and selling in many of the country’s most heavily traded shares from Apple Inc. to Intel Corp. and Facebook Inc. ground to a virtual halt after Nasdaq took the action. As of 1:03 p.m. in New York, the Nasdaq 100 equity index hadn’t moved in almost 40 minutes, data compiled by Bloomberg show.
The disruption, coming two days after options markets were roiled by mistaken trades sent by Goldman Sachs Group Inc., is the latest in a series of computer malfunctions that have raised questions about the reliability of electronic markets. Nasdaq came under scrutiny last year when it mishandled the public debut of Facebook, causing millions of dollars in losses for its member firms.
“This is just another one of those headaches that are going on with this electronic stuff,” Frank Ingarra, head trader at Greenwich, Connecticut-based NorthCoast Asset Management LLC, said in a phone interview. “That’s why it is important that you have multiple venues.”
The action froze stocks both on Nasdaq’s platforms and dozens of other markets around the country that trade securities it lists. Companies from Bats Global Markets Inc. in Lenexa, Kansas, to Jersey City, New Jersey-based Direct Edge Holdings published notices saying they were adopting Nasdaq’s halt.
“We are monitoring the situation and are in close contact with the exchanges,” SEC spokesman John Nester said.
Nasdaq said in a 12:59 p.m. update that it intends to re-open trading “at a time to be determined.”
“NASDAQ intends to re-open trading in all Tape C securities with a halt cross with a 5-minute quote only period starting at a time to be determined,” the alert said. ’’NASDAQ will not be canceling open orders on the book. Customers who wish to cancel their orders may do so and any customer who wishes to not participate in the re-opening should cancel their orders prior to the resumption of trading. Additionally, NASDAQ will clear all stale quotes from the UTP SIP prior to the commencement of trading.’’
Earlier, NYSE Arca said that as of 10:46 a.m. it was canceling all live orders in Tape C symbol range TACT through ZYY.C, except for GTCs, or “good til canceled,” orders.