Trading Halted on NYSE Floor

At 11:32 this morning a technical glitch halted all trading on the NYSE floor. Although there was no indication of malicious activity, the White House, Treasury Department, and SEC have been monitoring the situation closely. As of this writing, it appears that the problem was with software that had been updated overnight.

NYSE President Thomas Farley "Prepare for the Close"

According to the president of the exchange, Thomas Farley, traders can expect the computer systems to be back online for the close of the day. Although there is currently no timetable for reopening, Farley told reporters that he has instructed his technical team to "Take your time.
Identify the problem... [and] prepare for the close."

The problem, which isn't entirely unprecedented, is currently only affecting the trading floor.  The NYSE's digital "Archipelago" system has been up and trading throughout the day. According to Farley, the issue comes down to "configuration issues with the NYSE application." The digital problems come on the tail of a morning hiccup that affected trading briefly.

Although exchange president Farley has been optimistic that the exchange would be open for the closing bell, no timetable has been giving. According to reports, Farley himself has said, "We'll be open for the close today. That's the plan."

All Open Orders Are Canceled

Although these trading issues aren't affecting most outside systems which professional traders use to access the market, the literal crash has been tough on consumer trading. Dow Jones futures dipped to lows of 17,500 today, and volume is way down. All of the open orders on the exchange have been canceled.

Tech Failures Throughout the Day

The floor crash isn't the only tech issue that traders have dealt with today. Both the Wall St. Journal and United Airlines (UAL) have had massive problems with tech today. In the case of United, flights were grounded as technicians located the cause of the problem. Each of the three failures hit within an hour of the others, foul play isn't suspected in any of the cases.

FBI "No Law Enforcement Action is Needed"

The only similarities between the three cases -- aside from timing -- is the fact that each company relies on massively scalable code. These platforms, which can support millions of simultaneous users, are incredibly complex. Although such a simultaneous breakdown is unlikely, the FBI doesn't suspect foul play. It released a statement about the three crashes, saying "No law enforcement action is needed."
Published on Jul 8, 2015
By Aaron Phillips
Aaron Phillips is a financial researcher and journalist based out of Michigan. He regularly writes the IG Daily and IG Weekly columns.

Copyrighted 2020. Content published with author's permission.

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