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| Version 8 | Version 9 |
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| Stock trading closed on NYSE after glitch caused major outage – as it happened | Stock trading closed on NYSE after glitch caused major outage – as it happened |
| (1 day later) | |
| 9.53pm BST | 9.53pm BST |
| 21:53 | 21:53 |
| We’re going to close our coverage of the stock market outage for the day with a quick summary of what happened and what we do and don’t know. | We’re going to close our coverage of the stock market outage for the day with a quick summary of what happened and what we do and don’t know. |
| 9.44pm BST | 9.44pm BST |
| 21:44 | 21:44 |
| The outage was caused by a “configuration problem in our system that needed fixing,” NYSE president Tom Farley has told CNBC, but adds: “whether that came up as a result of an update is premature” to say. | The outage was caused by a “configuration problem in our system that needed fixing,” NYSE president Tom Farley has told CNBC, but adds: “whether that came up as a result of an update is premature” to say. |
| “We found what was wrong and we fixed what was wrong and we have no evidence whatsoever to suspect that it was external. | “We found what was wrong and we fixed what was wrong and we have no evidence whatsoever to suspect that it was external. |
| “Tonight and overnight starts the investigation of what exactly we need to change. Do we need to change those protocols? Absolutely. Exactly what those changes are I’m’ not prepared to say.” | “Tonight and overnight starts the investigation of what exactly we need to change. Do we need to change those protocols? Absolutely. Exactly what those changes are I’m’ not prepared to say.” |
| Farley argues that suspending trading on the floor was actually the lesser of two evils compared to shifting trading to the emergency recovery center in Chicago. “It was never really an option for us to go to the disaster recovery,” he says. | Farley argues that suspending trading on the floor was actually the lesser of two evils compared to shifting trading to the emergency recovery center in Chicago. “It was never really an option for us to go to the disaster recovery,” he says. |
| The NYSE would have shifted to Chicago only in the event of a “catastrophe, a hurricane” or something similar, he adds. | The NYSE would have shifted to Chicago only in the event of a “catastrophe, a hurricane” or something similar, he adds. |
| “We have a playbook that we follow, and that involves making a decision like I did today,” he says. “One of the important concepts or precepts of our plan is to choose the least disruptive option to customers wherever possible.” | “We have a playbook that we follow, and that involves making a decision like I did today,” he says. “One of the important concepts or precepts of our plan is to choose the least disruptive option to customers wherever possible.” |
| “Ultimately while we think of the cloud and the ether and the internet, ultimately you’re connecting to a place … so in order to go to a disaster recovery system you need to point to that place.” | “Ultimately while we think of the cloud and the ether and the internet, ultimately you’re connecting to a place … so in order to go to a disaster recovery system you need to point to that place.” |
| Finally he adds that the NYSE was in “near constant communication, not just today” with government and security agencies. | Finally he adds that the NYSE was in “near constant communication, not just today” with government and security agencies. |
| 9.25pm BST | 9.25pm BST |
| 21:25 | 21:25 |
| No matter how bad a day today was for the tech developers at the NYSE, traders in China had a worse day as their stock market continued its three-week nosedive. They’ve also had a bit of fun at New York’s expense. | No matter how bad a day today was for the tech developers at the NYSE, traders in China had a worse day as their stock market continued its three-week nosedive. They’ve also had a bit of fun at New York’s expense. |
| Buzzfeed has collected and translated some of the better quips: | Buzzfeed has collected and translated some of the better quips: |
| “In order to set an example of trading halt for China’s stock markets, NYSE did its best1” | “In order to set an example of trading halt for China’s stock markets, NYSE did its best1” |
| “Is it because NYSE traders bought Chinese stocks?” | “Is it because NYSE traders bought Chinese stocks?” |
| “Maybe it’s done by our men.” | “Maybe it’s done by our men.” |
| You can read the set here. | You can read the set here. |
| 9.06pm BST | 9.06pm BST |
| 21:06 | 21:06 |
| Market closes | Market closes |
| The bells sound and the traders clap: it’s closing time on Wall Street after a three and a half hour outage blamed on technical problems. | The bells sound and the traders clap: it’s closing time on Wall Street after a three and a half hour outage blamed on technical problems. |
| Although the NYSE was closed for half the day, trading continued through other venues, and the day of decline continued as concerns about the Chinese market and Greek debt influenced the market. | Although the NYSE was closed for half the day, trading continued through other venues, and the day of decline continued as concerns about the Chinese market and Greek debt influenced the market. |
| All in all, the Dow was down about 260pts (1.47%), the S&P down 35pts (1.67%) and the Nasdaq down 87pts (1.75%) – not a great day for Wall Street, though nothing like the free fall and panic from the day in China. | All in all, the Dow was down about 260pts (1.47%), the S&P down 35pts (1.67%) and the Nasdaq down 87pts (1.75%) – not a great day for Wall Street, though nothing like the free fall and panic from the day in China. |
| 8.59pm BST | 8.59pm BST |
| 20:59 | 20:59 |
| Need more dystopia in your day of Wall Street semi-shutdowns? Molly Crabapple has your apocalyptic vision over at Comment is Free. | Need more dystopia in your day of Wall Street semi-shutdowns? Molly Crabapple has your apocalyptic vision over at Comment is Free. |
| Outside, I take in the scene: street preachers denouncing Gnosticism, a lone banker trying to garrote himself with ticket tape, and the Bull – that gold, beautiful bull – running through the streets like Zeus. I chase after it for a quote, but, like the dubious financial transactions powered by super-compressors, it is too quick. | Outside, I take in the scene: street preachers denouncing Gnosticism, a lone banker trying to garrote himself with ticket tape, and the Bull – that gold, beautiful bull – running through the streets like Zeus. I chase after it for a quote, but, like the dubious financial transactions powered by super-compressors, it is too quick. |
| Smoke. Weeping. Screams. | Smoke. Weeping. Screams. |
| I hire now-former JP Morgan CEO Jamie Dimon as my local fixer. “Tell me the ways of your people, caught as they are between the present and the ancient past,” I demand, offering him half a hotdog as payment. Instead, he weeps. He tried to seek shelter at the dungeon of his favorite pro domme, he tells me, but when his black card bounced she slammed the door in his face. | I hire now-former JP Morgan CEO Jamie Dimon as my local fixer. “Tell me the ways of your people, caught as they are between the present and the ancient past,” I demand, offering him half a hotdog as payment. Instead, he weeps. He tried to seek shelter at the dungeon of his favorite pro domme, he tells me, but when his black card bounced she slammed the door in his face. |
| In Zuccotti Park, once the home of Occupy, the ex-Goldman Sachs boys have built a squatters city out of Hermès gift boxes that were meant for their mistresses. They communicate only by wiggling their fingers. No cops try to roust them. Behind us, Tiffany’s burns. | In Zuccotti Park, once the home of Occupy, the ex-Goldman Sachs boys have built a squatters city out of Hermès gift boxes that were meant for their mistresses. They communicate only by wiggling their fingers. No cops try to roust them. Behind us, Tiffany’s burns. |
| Then we hear the chanting. Dear god. The chanting. Dimon and I run towards it. | Then we hear the chanting. Dear god. The chanting. Dimon and I run towards it. |
| You can read the full piece – eldritch offerings, taurine testicles and all – here. | You can read the full piece – eldritch offerings, taurine testicles and all – here. |
| 8.44pm BST | 8.44pm BST |
| 20:44 | 20:44 |
| Four hours later and less than half an hour before closing time, the New York Stock Exchange announces that it’s back to business as usual. | Four hours later and less than half an hour before closing time, the New York Stock Exchange announces that it’s back to business as usual. |
| BREAKING: NYSE says "all systems are functioning normally" after trading resumed after 3+ hour trading halt » http://t.co/jvkuQmTVYV | BREAKING: NYSE says "all systems are functioning normally" after trading resumed after 3+ hour trading halt » http://t.co/jvkuQmTVYV |
| 8.33pm BST | 8.33pm BST |
| 20:33 | 20:33 |
| Market outages are neither uncommon nor much of a problem for investors, according to the Wall Street Journal, which has published a story about closures not long after the newspaper’s own site went down on Wednesday. | Market outages are neither uncommon nor much of a problem for investors, according to the Wall Street Journal, which has published a story about closures not long after the newspaper’s own site went down on Wednesday. |
| No exchange has exclusive rights to trade any stock or exchange-traded fund, except during the opening and closing of trading. Apart from those brief periods, trading takes place at any of a dozen exchanges and more than 40 private trading venues, known as dark pools. | No exchange has exclusive rights to trade any stock or exchange-traded fund, except during the opening and closing of trading. Apart from those brief periods, trading takes place at any of a dozen exchanges and more than 40 private trading venues, known as dark pools. |
| Outages could hurt traders and investors if they have orders sitting on the order book of an exchange that has a problem. So if an institution has an offer at an exchange to buy 1,000 shares of Apple Inc at a certain price, and the market stops trading, it can cause uncertainty. | Outages could hurt traders and investors if they have orders sitting on the order book of an exchange that has a problem. So if an institution has an offer at an exchange to buy 1,000 shares of Apple Inc at a certain price, and the market stops trading, it can cause uncertainty. |
| The institution might not be able to find out whether its order traded, and it could have trouble canceling the order. The NYSE said in a note to traders that all open orders had been canceled except the long-term requests to buy or sell put in by institutions that are known as “good-till-cancel” orders. | The institution might not be able to find out whether its order traded, and it could have trouble canceling the order. The NYSE said in a note to traders that all open orders had been canceled except the long-term requests to buy or sell put in by institutions that are known as “good-till-cancel” orders. |
| “Outages have hit the markets every few months in recent years,” the Journal continues, adding that the real problem would have been the prevention of closing auctions when most trading takes place. | “Outages have hit the markets every few months in recent years,” the Journal continues, adding that the real problem would have been the prevention of closing auctions when most trading takes place. |
| Those final auctions also “set the closing price for NYSE-listed stocks” and set the markets in place for businesses and investors to take stock (sorry) of the day. | Those final auctions also “set the closing price for NYSE-listed stocks” and set the markets in place for businesses and investors to take stock (sorry) of the day. |
| Many firms use those final prices to mark the value of their portfolios and set risk parameters. Without those closing prices, they might be forced to use less-accurate prices, and that could affect other trading decisions. | Many firms use those final prices to mark the value of their portfolios and set risk parameters. Without those closing prices, they might be forced to use less-accurate prices, and that could affect other trading decisions. |
| There is some precedent for resolving problems with the closing auctions. In November 2012, technical issues forced the NYSE to find an alternative when it couldn’t hold closing auctions for 216 stocks, according to a note put out by Credit Suisse trading researchers Wednesday afternoon. In that case, the NYSE determined a closing price by monitoring transactions at other venues. | There is some precedent for resolving problems with the closing auctions. In November 2012, technical issues forced the NYSE to find an alternative when it couldn’t hold closing auctions for 216 stocks, according to a note put out by Credit Suisse trading researchers Wednesday afternoon. In that case, the NYSE determined a closing price by monitoring transactions at other venues. |
| 8.17pm BST | 8.17pm BST |
| 20:17 | 20:17 |
| As the machines once again match bids and quotes, the stock exchange tweets its official blessing upon the markets. | As the machines once again match bids and quotes, the stock exchange tweets its official blessing upon the markets. |
| There’s no fanfare on the floor – just numbers gradually starting to change again on monitors and a little more activity among the traders. | There’s no fanfare on the floor – just numbers gradually starting to change again on monitors and a little more activity among the traders. |
| Trading on NYSE and NYSE MKT has resumed | Trading on NYSE and NYSE MKT has resumed |
| 8.11pm BST | 8.11pm BST |
| 20:11 | 20:11 |
| Stock exchange resumes trading | Stock exchange resumes trading |
| The New York Stock Exchange has returned to business after more than three and a half hours of an unexpected closure, which officials blamed on technical problems. | The New York Stock Exchange has returned to business after more than three and a half hours of an unexpected closure, which officials blamed on technical problems. |
| The exchange closed at 11.32am ET and re-opened just under an hour before the close of markets at 4pm ET. | The exchange closed at 11.32am ET and re-opened just under an hour before the close of markets at 4pm ET. |
| The secretary of the Department of Homeland Security said that there’s no indication the abrupt stoppage was linked to “nefarious” actors. NYSE president Thomas Farley said that the technical problem was “identified” and “addressed” but did not describe what happened. | The secretary of the Department of Homeland Security said that there’s no indication the abrupt stoppage was linked to “nefarious” actors. NYSE president Thomas Farley said that the technical problem was “identified” and “addressed” but did not describe what happened. |
| Officials said there was no reason believe that the NYSE glitch is at all linked to coincidental technical problems at United Airlines and the Wall Street Journal. | Officials said there was no reason believe that the NYSE glitch is at all linked to coincidental technical problems at United Airlines and the Wall Street Journal. |
| Although trading continued apparently on other open exchanges apparently unperturbed by the outage, the Dow is currently more than 200 points down. | Although trading continued apparently on other open exchanges apparently unperturbed by the outage, the Dow is currently more than 200 points down. |
| Updated | Updated |
| at 8.12pm BST | at 8.12pm BST |
| 8.09pm BST | 8.09pm BST |
| 20:09 | 20:09 |
| “It was a mess from the open,” a broker has told Reuters, which runs down what happened this morning and the importance of closing time on Wall Street. | “It was a mess from the open,” a broker has told Reuters, which runs down what happened this morning and the importance of closing time on Wall Street. |
| Some of the internet ports to the NYSE would not connect, or would unexpectedly disconnect, and this was happening from before market opened until the halt, the broker said. | Some of the internet ports to the NYSE would not connect, or would unexpectedly disconnect, and this was happening from before market opened until the halt, the broker said. |
| The exchange does a lot of its business at the close of trading, and if it’s still down then, the problems could increase. | The exchange does a lot of its business at the close of trading, and if it’s still down then, the problems could increase. |
| “That could be a major problem,” said Peter Costa, president of boutique trading firm Empire Executions Inc. “The bigger issue is that there are unfilled orders that would likely not get filled at the closing price.” | “That could be a major problem,” said Peter Costa, president of boutique trading firm Empire Executions Inc. “The bigger issue is that there are unfilled orders that would likely not get filled at the closing price.” |
| 8.01pm BST | 8.01pm BST |
| 20:01 | 20:01 |
| “They don’t need human beings,” an options trader opines on the tech woes of Wall Street, in video shot by my colleague Jana Kasperkevic. | “They don’t need human beings,” an options trader opines on the tech woes of Wall Street, in video shot by my colleague Jana Kasperkevic. |
| 7.56pm BST | 7.56pm BST |
| 19:56 | 19:56 |
| Officials at the NYSE have just announced that they have a plan, CNBC reports. | Officials at the NYSE have just announced that they have a plan, CNBC reports. |
| Officials have said they’re going to try to open the American Stock Exchange at 3.05pm ET and the New York Stock Exchange at 3.10pm ET, leaving just under an hour of trading if the gates re-open without a hitch. | Officials have said they’re going to try to open the American Stock Exchange at 3.05pm ET and the New York Stock Exchange at 3.10pm ET, leaving just under an hour of trading if the gates re-open without a hitch. |
| 7.47pm BST | 7.47pm BST |
| 19:47 | 19:47 |
| 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? | 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. | 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. | 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. | “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.’ | “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.” | “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.” | But does the exchange need people? “They don’t need human beings.” |
| 7.35pm BST | 7.35pm BST |
| 19:35 | 19:35 |
| 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). | 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. | 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. | 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 | 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 |
| 7.23pm BST | 7.23pm BST |
| 19:23 | 19:23 |
| 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. | 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. | 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 | Floor trader says the NYSE is rebooting its systems, which can take 45 minutes, and hopes everything is working when it's up again |
| 7.14pm BST | 7.14pm BST |
| 19:14 | 19:14 |
| NYSE president: exchange will re-open today | NYSE 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 | Updated |
| at 7.38pm BST | at 7.38pm BST |