National Stock Exchange was under fire on Monday for halting trading for three hours in the morning due to a technical snag. The disruption caused chaos and confusion among brokers, investors and traders with regard to pricing of the securities and status of their trade orders.
When NSE finally resumed normal trading in cash and derivatives at 12.30 pm in its third attempt after its two consecutive attempts at starting the trade failed, it was still trying to address a display issue which was preventing from updated prices being shown in cash markets, after dealers complained that there were still issues in executing trade orders in cash segment.
Manic Monday in Asia
However, NSE was not alone, and had company on Monday. Elsewhere across the continent, one other stock exchange too went through something similar and halted trading. It was Indonesia Stock Exchange, where the trouble started at the open at 9 am local time, with the bourse imposing its halt at 9:34 am. It reopened for trade soon after 10 am.
Recently, across the globe, there have been several incidents in which the trade at major stock exchanges has suffered technical glitches, causing markets disruption in one way or the other. There have been several notable trade disruptions on the US stock exchanges as well, including one on Nasdaq, which, ironically is known for listing technology companies.
Here are a few of the technical glitches on stock exchanges which made news recently.
BSE, NSE have a history
Over one-and-a-half years ago too, in December 2015, NSE suffered a disruption that halted trading in the futures and options and cash segments. Previously, in June 2014, a technical error led to a three-hour trading halt at BSE. This halt was the longest on record for BSE, which is Asia’s oldest exchange. BSE had also suffered a two-and-a-half hour stoppage in November 2010 due to a technical fault involving trade confirmations.
Nasdaq: July 2017
As recently as on July 3 this year, share price of several companies listed on Nasdaq got locked at $123.47. This resulted in crash in prices of some securities, while a surge in the prices of several others. Nasdaq said it was due to the third party financial data providers and improper use of test data.
NYSE: May 2016
On May 18 last year, New York Stock Exchange was flummoxed as trading for 199 ticker symbols halted due to a technical issue. It cancelled all open orders, including markets-on-close and limit-on-close. Both the Nasdaq and BATS stock exchanges declared self-help against the NYSE amid the technical problems, which allows trading centers to bypass an automated trading center that is experiencing system problems.