The New York Stock Exchange in the United States faced a thrilling moment on Tuesday (24th). Due to technical problems, several stocks plummeted briefly after the opening, and then the New York Stock Exchange suspended trading of these stocks.
After the U.S. stock market opened that day, Wells Fargo (WFC-US) ,Morgan Stanley (MS-US) and other financial services stocks tumbled. In addition, many stocks temporarily suspended trading due to abnormal fluctuations in pre-market trading. Trading in more than 250 stocks was affected, according to the NYSE website.
These stocks all rebounded quickly after the stock exchange resumed trading in these stocks. According to Wind market data, Morgan Stanley, Wells Fargo and other stocks all opened lower by more than 8%, and then rose rapidly.
The NYSE posted a spreadsheet of trades that would be declared invalid, without elaborating on why the system went wrong. A spokesman for the SEC said it was investigating the matter. This extremely rare suspension appears to be a technical issue rather than something that happened on the trading floor.
In fact, this is not the first time that a rare malfunction has occurred in the history of the NYSE. In early July 2015, the New York Stock Exchange suspended trading for more than three and a half hours due to technical failures.
At 11:32 U.S. Eastern Time on July 8, 2015, the New York Stock Exchange suddenly suspended all securities trading. The New York Stock Exchange issued an announcement stating that due to technical failures, trading was suspended and all unexecuted trading orders will be cancelled. The NYSE emphasized that the accident was caused by internal technical problems and the possibility of cyber attacks has been ruled out.
In addition to the New York Stock Exchange, another exchange in the United States——NasdaqExchanges experienced similar rare glitches years ago. August 22, 2013NasdaqThe exchange suspended trading for more than 3 hours due to a technical glitch. In 2012, Facebook wasNasdaqOn the day of listing,NasdaqThere was also a glitch in the trading system, which delayed the start of Facebook stock trading by half an hour.NasdaqA $10 million fine was paid to the SEC for this, the largest fine ever imposed by the SEC against a stock exchange.
Electronic trading system failures occur frequently, causing the industry to question the reliability of electronic trading systems. Industry insiders pointed out that the SEC should find out the reasons and take measures to ensure that such accidents do not happen again. People in the industry also called on the SEC to strengthen the overall supervision of electronic trading and high-frequency trading, such as requiring routine testing of sub-trading systems, establishing backup systems to deal with system failures, and establishing emergency mechanisms.