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New York Stock Exchange shut down over 'technical issue' – live updates New York Stock Exchange shut down over 'technical issue' – live updates
(35 minutes later)
2.47pm ET19:47
Does the automation of the stock market mean many more days of glitches, breaks and malfunctions interrupting the rivers of cash moving around the world?
At least one trader foresees problems in the rise of the machines – but says that doesn’t mean the markets need people per se. My colleague Jana Kasperkevic (@kasperka) reports from outside the NYSE.
Hours into the unexpected break in trading, an options trader who gave his name as Chris stepped outside to puff away on his e-cigarette, and eventually relented to questions about the hours-long break in trading.
“We need better technology. I mean, this hasn’t happened ever on the New York Stock exchange, for what they say,” he said. “I’m in options. I am not on the equity floor. I have never seen this happen on the New York Stock exchange ever, where all symbols halt at the same time.
“It makes me worried that they are trying to make this a fully automated exchange, and what they are doing, they are slowing things down on purpose, saying ‘we don’t need people.’
“If we had different technology and we didn’t have people running certain things, we wouldn’t have this problem. They are trying to make everything electronic. That’s what happened.”
But does the exchange need people? “They don’t need human beings.”
2.35pm ET19:35
Fortune Magazine has also postulated that a problem in a software update is what brought the NYSE to its knees – or at least froze it in place, since stocks are trading in other venues. (via @nicflatow).
Eric Scott Hunsader, an expert in Wall Street trading systems who heads market data firm Nanex, said that it appears that a faulty system upgrade brought trading on the exchange to a halt. The NYSE has reportedly also told floor traders the exchange had to suspend trading due to an error with a systems upgrade that was rolled out before the market opened on Wednesday.
The Guardian’s Sam Thielman has a couple follow-up questions.
If Fortune is right that a "systems upgrade" broke the NYSE, A) who makes that software B) is that company publicly traded C) can I short it
2.23pm ET19:23
Farley projected the NYSE to resume trading within the hour, which would give the exchange roughly an hour of running normally before the daily “close” of 4pm ET.
Meanwhile the New York Times’ Nathaniel Popper reports that the NYSE had to manually cancel some 700,000 existing orders so that it could restart the exchange, citing a trader on the floor.
Floor trader says the NYSE is rebooting its systems, which can take 45 minutes, and hopes everything is working when it's up again
2.14pm ET19:142.14pm ET19:14
NYSE president: exchange will re-open todayNYSE president: exchange will re-open today
The NYSE will be up and running again before close today, president Thomas Farley has just told CNBC.The NYSE will be up and running again before close today, president Thomas Farley has just told CNBC.
“We identified the issue and we have that addressed,” he says, estimating between a return to business around 2.45-3pm.“We identified the issue and we have that addressed,” he says, estimating between a return to business around 2.45-3pm.
He adds that it’s “premature” to say what the actual issue is. “Our system is more than just software, the network connectivity, the various external internal sources, and the actual hardware.” He adds that it’s “premature” to say what the actual issue is. “Our system is more than just software, the network connectivity, the various external internal sources, and the actual hardware.
“It’s not a good day and i don’t feel good for our customers who continue to deal with the fallout.” “It’s not a good day and I don’t feel good for our customers who continue to deal with the fallout.”
Farley adds: “I wanted my team to take their time and get it right, be open for the close.”Farley adds: “I wanted my team to take their time and get it right, be open for the close.”
He says that he does not believe there’s any connection between the glitches that occurred today at different organizations, and that if there had been a “catastrophic issue” then there is a disaster recovery plan in place. “You need to have absolute resiliency.”He says that he does not believe there’s any connection between the glitches that occurred today at different organizations, and that if there had been a “catastrophic issue” then there is a disaster recovery plan in place. “You need to have absolute resiliency.”
Updated at 2.38pm ET
2.04pm ET19:042.04pm ET19:04
Guardian editors weigh in. Tech support from national security editor Spencer Ackerman.Guardian editors weigh in. Tech support from national security editor Spencer Ackerman.
Have they tried turning the stock exchange off & turning it back on?Have they tried turning the stock exchange off & turning it back on?
The usual suspects, courtesy business editor Dominic Rushe.The usual suspects, courtesy business editor Dominic Rushe.
#NYSE shutdown was it a) Time Warner Cable went down or b) Y2K?#NYSE shutdown was it a) Time Warner Cable went down or b) Y2K?
And a fear of time itself from live editor Paul Owen.And a fear of time itself from live editor Paul Owen.
Was it the leap second that caused all this chaos? http://t.co/Lm5zinMB1eWas it the leap second that caused all this chaos? http://t.co/Lm5zinMB1e
1.58pm ET18:581.58pm ET18:58
“At this point it’s unclear what kind of impact this particular glitch will have,” adds Earnest, to whom Guardian DC bureau chief Dan Roberts was also listening.“At this point it’s unclear what kind of impact this particular glitch will have,” adds Earnest, to whom Guardian DC bureau chief Dan Roberts was also listening.
Earnest says it’s “too early to offer an assessment [on any economic impact]” but said the Treasury department and Securities and Exchange Commission were closely monitoring the situation.Earnest says it’s “too early to offer an assessment [on any economic impact]” but said the Treasury department and Securities and Exchange Commission were closely monitoring the situation.
The NYSE has not given any indication as to its timeline for resolving the problem, and trading continues on other exchanges. On Wall Street life goes on.The NYSE has not given any indication as to its timeline for resolving the problem, and trading continues on other exchanges. On Wall Street life goes on.
1.47pm ET18:471.47pm ET18:47
President Barack Obama was briefed this morning on the suspension on Wall Street, White House press secretary Josh Earnest has just said during a press briefing.President Barack Obama was briefed this morning on the suspension on Wall Street, White House press secretary Josh Earnest has just said during a press briefing.
Earnest’s message (paraphrased): don’t panic.Earnest’s message (paraphrased): don’t panic.
“The officials at the stock exchange are working feverishly, as you would expect.”“The officials at the stock exchange are working feverishly, as you would expect.”
Earnest said that “there is no indication that malicious actors are involved in these technology issues” and that NYSE officials “had been in close touch with the Department of Homeland Security, with the [SEC] as well as the Treasury Department.”Earnest said that “there is no indication that malicious actors are involved in these technology issues” and that NYSE officials “had been in close touch with the Department of Homeland Security, with the [SEC] as well as the Treasury Department.”
Obama briefed on NYSE outage by homeland security adviser Lisa Monaco who says 'no indication of malicious actors involved' says @PressSecObama briefed on NYSE outage by homeland security adviser Lisa Monaco who says 'no indication of malicious actors involved' says @PressSec
Earnest goes on to say that more generally, the government is “keenly aware of the risk in cyberspace that exists right now” and wants to “improve communication between the private sector and the federal government.”Earnest goes on to say that more generally, the government is “keenly aware of the risk in cyberspace that exists right now” and wants to “improve communication between the private sector and the federal government.”
China and Russia have been recently blamed for massive data breaches and cyber attacks against the US government, including on data of people with security clearances and on the White House email system.China and Russia have been recently blamed for massive data breaches and cyber attacks against the US government, including on data of people with security clearances and on the White House email system.
“Our security posture is continually evolving,” Earnest says.“Our security posture is continually evolving,” Earnest says.
Updated at 1.49pm ETUpdated at 1.49pm ET
1.36pm ET18:361.36pm ET18:36
Two hours into the stoppage, the apparent electronic glitch is not inspiring Wall Street about the quality of the exchange, Guardian US business editor Dominic Rushe (@dominicru) reports:Two hours into the stoppage, the apparent electronic glitch is not inspiring Wall Street about the quality of the exchange, Guardian US business editor Dominic Rushe (@dominicru) reports:
Jack Ablin, chief investment officer of BMO Private Bank, said he initially worried that China’s woes had spread to the US when he heard the news and was relieved that it appeared to be a technical glitch. “That said it doesn’t add a lot of confidence in the markets when investors don’t have a lot to begin with,” he said.Jack Ablin, chief investment officer of BMO Private Bank, said he initially worried that China’s woes had spread to the US when he heard the news and was relieved that it appeared to be a technical glitch. “That said it doesn’t add a lot of confidence in the markets when investors don’t have a lot to begin with,” he said.
China’s stock markets have fallen more than 30% in the last three weeks after massive gains in the last year.China’s stock markets have fallen more than 30% in the last three weeks after massive gains in the last year.
At CNBC, journalists and investors are avidly discussing the foibles and flaws of one of the most important stock exchanges in the world.At CNBC, journalists and investors are avidly discussing the foibles and flaws of one of the most important stock exchanges in the world.
“At the NYSE this is a manual process,” said Sal Arnuk, a principal at Themis Trading. “Is the NYSE technologically the most (robust) exchange in the world? No. The fact of the matter is the different exchange operators have diverse standards, different architecture. Some of them are more legacy than others. This is to be expected from time to time.”“At the NYSE this is a manual process,” said Sal Arnuk, a principal at Themis Trading. “Is the NYSE technologically the most (robust) exchange in the world? No. The fact of the matter is the different exchange operators have diverse standards, different architecture. Some of them are more legacy than others. This is to be expected from time to time.”
Meanwhile a trader has told the New York Times on condition of anonymity that after trading stopped, they were told “that the problem was related to updated software that was rolled out before markets opened”.Meanwhile a trader has told the New York Times on condition of anonymity that after trading stopped, they were told “that the problem was related to updated software that was rolled out before markets opened”.
According to the trader, the exchange said that the new software caused problems soon after trading began on Wednesday and the exchange decided to shut down trading all together to fix the problem.According to the trader, the exchange said that the new software caused problems soon after trading began on Wednesday and the exchange decided to shut down trading all together to fix the problem.
1.25pm ET18:251.25pm ET18:25
The exchange has been closed for more than an hour and a half now, since 11.32am. The longer it goes the more traders emerge to smoke, notes my colleague Jana Kasperkevic – but the traders are pretty insouciant about the break, at least so far.The exchange has been closed for more than an hour and a half now, since 11.32am. The longer it goes the more traders emerge to smoke, notes my colleague Jana Kasperkevic – but the traders are pretty insouciant about the break, at least so far.
At about 1 pm – an hour and a half after the trading halted at 11.32am, one of the traders walked over to the barricades. He had been standing a few feet away in the comfortable shade of the building he works at. After a reporter beckoned him, he strolled over and other reporters flocked to him.At about 1 pm – an hour and a half after the trading halted at 11.32am, one of the traders walked over to the barricades. He had been standing a few feet away in the comfortable shade of the building he works at. After a reporter beckoned him, he strolled over and other reporters flocked to him.
“What? Do you want my autograph now?” he asked. “I can’t comment,” he said.“What? Do you want my autograph now?” he asked. “I can’t comment,” he said.
When asked if the trading being halted for more than hour and a half, he smiled: “What’s scary is you asking me all these questions.”When asked if the trading being halted for more than hour and a half, he smiled: “What’s scary is you asking me all these questions.”
Updated at 1.26pm ETUpdated at 1.26pm ET
1.20pm ET18:201.20pm ET18:20
Homeland Security secretary Jeh Johnson is delivering a speech on cybersecurity in Washington, and opened by saying the stoppage is not due to “nefarious actions”. The Guardian’s Ben Jacobs is listening in.Homeland Security secretary Jeh Johnson is delivering a speech on cybersecurity in Washington, and opened by saying the stoppage is not due to “nefarious actions”. The Guardian’s Ben Jacobs is listening in.
Johnson: It appears that today we had a system malfunctions at United, the New York Stock Exchange and the Wall Street JournalJohnson: It appears that today we had a system malfunctions at United, the New York Stock Exchange and the Wall Street Journal
Johnson says it appears that the malfunctions at United and NYSE was not the result of nefarious actions. We know less about the WSJJohnson says it appears that the malfunctions at United and NYSE was not the result of nefarious actions. We know less about the WSJ
1.16pm ET18:161.16pm ET18:16
My colleague Jana Kasperkevic is on Wall Street, where the exchange looms up over the sidewalk. She reports:My colleague Jana Kasperkevic is on Wall Street, where the exchange looms up over the sidewalk. She reports:
The New York State Exchange stand regal in the downtown Manhattan, one side of it draped in huge American flag. Even as tourists snap selfies and family portraits nearby, the building remains inaccessible as the traders who work on its floors are separated from the public by metal barricades.The New York State Exchange stand regal in the downtown Manhattan, one side of it draped in huge American flag. Even as tourists snap selfies and family portraits nearby, the building remains inaccessible as the traders who work on its floors are separated from the public by metal barricades.
The exchange has claimed at least a ten-feet wide sidewalk, where traders can smoke in peace. And smoke they did on Wednesday.The exchange has claimed at least a ten-feet wide sidewalk, where traders can smoke in peace. And smoke they did on Wednesday.
About an hour after the trading halted, one walked out. “What happened?” two photographers standing nearby asked. He shrugged, “the system crashed.”About an hour after the trading halted, one walked out. “What happened?” two photographers standing nearby asked. He shrugged, “the system crashed.”
Bunch of tourists snapping selfies outside #nyse. Maybe it's the flag? pic.twitter.com/Na2BRR67EtBunch of tourists snapping selfies outside #nyse. Maybe it's the flag? pic.twitter.com/Na2BRR67Et
1.11pm ET18:111.11pm ET18:11
A US official has told the Guardian that there is no indication anything that happened today was the result of any malicious actor, cyber attack, etc.A US official has told the Guardian that there is no indication anything that happened today was the result of any malicious actor, cyber attack, etc.
The day is apparently full of coincidences of a technically glitchy nature, however. United Airlines grounded all US flights over computer issues earlier on Wednesday, telling my colleague Amanda Holpuch (@holpuch) the major delays were due to a “network connectivity issue”. The Wall Street Journal’s website also briefly shut down around midday.The day is apparently full of coincidences of a technically glitchy nature, however. United Airlines grounded all US flights over computer issues earlier on Wednesday, telling my colleague Amanda Holpuch (@holpuch) the major delays were due to a “network connectivity issue”. The Wall Street Journal’s website also briefly shut down around midday.
Meanwhile in Washington FBI director James Comey warned senators about the dangers of commercial encryption and urged them to allow “backdoor” access into encryption software. Homeland Security secretary Jeh Johnson is scheduled to give a speech on cybersecurity later today.Meanwhile in Washington FBI director James Comey warned senators about the dangers of commercial encryption and urged them to allow “backdoor” access into encryption software. Homeland Security secretary Jeh Johnson is scheduled to give a speech on cybersecurity later today.
For the more conspiracy-minded readers out there, hacker collective Anonymous has the tweet for you, sent late last night.For the more conspiracy-minded readers out there, hacker collective Anonymous has the tweet for you, sent late last night.
Wonder if tomorrow is going to be bad for Wall Street.... we can only hope.Wonder if tomorrow is going to be bad for Wall Street.... we can only hope.
12.54pm ET17:5412.54pm ET17:54
The NYSE has elaborated a bit on the closure, saying it was caused by “an internal technical issue and is not the result of a cyber breach”.The NYSE has elaborated a bit on the closure, saying it was caused by “an internal technical issue and is not the result of a cyber breach”.
A spokesperson for the NYSE released this statement: ““We’re currently experiencing a technical issue that we’re working to resolve as quickly as possible. We will be providing further updates as soon as we can, and are doing our utmost to produce a swift resolution, communicate thoroughly and transparently, and ensure a timely and orderly market re-open.”A spokesperson for the NYSE released this statement: ““We’re currently experiencing a technical issue that we’re working to resolve as quickly as possible. We will be providing further updates as soon as we can, and are doing our utmost to produce a swift resolution, communicate thoroughly and transparently, and ensure a timely and orderly market re-open.”
Even should the NYSE resolve its technical issue promptly, the Intercontinental Exchange that owns it will inevitably face questions as to why it apparently gave no forewarning that it would shut down trading in the middle of an otherwise normal workday.Even should the NYSE resolve its technical issue promptly, the Intercontinental Exchange that owns it will inevitably face questions as to why it apparently gave no forewarning that it would shut down trading in the middle of an otherwise normal workday.
(2 of 3) We chose to suspend trading on NYSE to avoid problems arising from our technical issue.(2 of 3) We chose to suspend trading on NYSE to avoid problems arising from our technical issue.
(3 of 3) NYSE-listed securities continue to trade unaffected on other market centers.(3 of 3) NYSE-listed securities continue to trade unaffected on other market centers.
12.50pm ET17:5012.50pm ET17:50
The New York Stock Exchange unexpectedly stopped all trading at about 11.30am ET on Wednesday after a “major technical issue”.The New York Stock Exchange unexpectedly stopped all trading at about 11.30am ET on Wednesday after a “major technical issue”.
The NYSE’s website only reads: “Additional information will follow as soon as possible.”The NYSE’s website only reads: “Additional information will follow as soon as possible.”
Other exchanges such as the Nasdaq remain open and functioning, and although law enforcement agencies have said they are investigating, the Department of Homeland Security said there was no sign of suspicious activity.Other exchanges such as the Nasdaq remain open and functioning, and although law enforcement agencies have said they are investigating, the Department of Homeland Security said there was no sign of suspicious activity.
The largest stock exchange in the US has suffered from technical problems before, though never of such duration or scale.The largest stock exchange in the US has suffered from technical problems before, though never of such duration or scale.
The apparent technical issue coincides with sharp falls in the Chinese stock market and fears in Europe over the Greek debt crisis.The apparent technical issue coincides with sharp falls in the Chinese stock market and fears in Europe over the Greek debt crisis.
We’ll include updates on the NYSE, markets and other developments here, assisted by my colleague Jana Kasperkevic (@kasperka) on Wall Street, and Dan Roberts (@robertsdan) and Ben Jacobs (@bencjacobs) will report on any developments on Washington about the stoppage.We’ll include updates on the NYSE, markets and other developments here, assisted by my colleague Jana Kasperkevic (@kasperka) on Wall Street, and Dan Roberts (@robertsdan) and Ben Jacobs (@bencjacobs) will report on any developments on Washington about the stoppage.
Updated at 12.51pm ETUpdated at 12.51pm ET