new york
CNN
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The New York Stock Exchange experienced a technical glitch Tuesday morning that caused a brief trading halt for dozens of major companies after the market opened. A representative of the exchange said that some trades that occurred before the suspension due to the problem will be “empty and empty”.
In total, more than 250 stocks were affected, including major names such as Verizon, McDonald’s, Morgan Stanley, AT&T, Nike, Mastercard, Uber, Wells Fargo, Shell, 3M, Sony, UPS, Visa, Walmart and Exxon Mobil. NYSE
Many of these stocks made big moves within minutes of the morning trading session, sending shares of companies like Wells Fargo and Morgan Stanley nose-diving.
Morgan Stanley briefly fell to $84.93 after ending Monday at $97.13 before recovering. McDonald’s and Walmart fell more than 12 percent before trading halted.
As of 9:50 a.m. ET Tuesday, all affected companies resumed trading on the NYSE, according to a status report from the NYSE that said “all systems are currently operational.”
Stocks typically open for trading on the NYSE at 9:30 a.m. ET, and each stock is assigned an “opening price” determined by the thousands of orders placed overnight. And in the morning before the opening bell. The exchange compiles these buy and sell orders and formats into a single price. That price is quoted in the open space and is known as the “bid print”.
In an emailed statement, exchange officials said opening bids “did not happen” after a “systemic problem” prevented orders accumulated on Tuesday from being aggregated to the opening price of some stocks.
That means those stocks opened at prices far from where they closed Monday due to a supply-demand mismatch.
It stated that trades made before the opening price is published will be considered “manifest error” by their rules and may be voided.
The NYSE did not explain the cause of the technical error. The U.S. Securities and Exchange Commission said Tuesday it was reviewing the case.
The NYSE, and other major stock exchanges, provide automatic stops for stocks that move dramatically up and down.
In May 2010, the Dow crashed during a “flash crash” before rebounding spectacularly. Later, according to the report of the United States regulators, the huge swing is the result of high frequency trading activity followed by a large trading volume by one market participant. That triggered a number of regulatory changes aimed at protecting equity markets, including a “limit cap” mechanism that prevented trades in individual stocks from swinging outside a certain price band.
But the exchange authorities can stop the transaction in case of technical problem. Last fall, three Canadian stock exchanges experienced a 40-minute outage due to a “connection problem,” before the exchange isolated the problem and fixed it.
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