Failed UTP SIP system shutters Nasdaq trading
Fails to deliver on first slated reopening; After a couple of false starts, trading resumed about 3:30 p.m.
Computerworld - Nasdaq's unprecedented trading halt today stemmed from a technical glitch with a core data feed that disseminates market data for Nasdaq-listed securities.
The feed is part of the exchange's UTP SIP system, or Unlisted Trading Privileges Securities Information Processor.
The broken system allows Nasdaq to send and receive quote and trade information on Nasdaq listed securities with other exchanges including the New York Stock Exchange, Chicago Stock Exchange and BATS Global Markets. Unlisted Trading Privileges permit other exchanges to trade in Nasdaq-listed securities,
According to an official description , "UTP SIP data feeds consist of one network, Tape C, which is the single source of consolidated market data for Nasdaq-listed securities." It provides continuous quotes and last sale information from all market centers trading Nasdaq-listed securities.
The NASDAQ OMX Group, Inc. today halted halting trading on all Nasdaq-listed securities at 12:14 p.m. The alert posted at 12:14 pm. ET noted that trading would resume later Thursday but did not specify when exactly that would happen.
Trading resumed about 3:30 p.m.
A July 5 Nasdaq alert reported that the UTP SIP is being modified to accommodate new data sets. The new Sale Condition Modifiers and Financial Status Indicators are said to be set for an Octomer rollout.
The Wall Street Journal's Market Watch described the trading halt as "extraordinary," affecting more than 2,000 companies including Google, Amazon, Microsoft and Cisco. Market Watch noted that the combined worth of companies affected by the trading freeze was around $5.7 trillion.
According to the Journal, the Nasdaq freeze has prompted other exchanges to stop trading Nasdaq-listed tocks, exchange-traded funds and options.
A spokesman from the New York Stock Exchange confirmed that the exchanged had halted trading in Nasdaq listed issues. "I can confirm that we have halted equities trading in Tape C (Nasdaq-listed) issues as well as any options based on Tape C securities, however, any comment would need to come from Nasdaq," the spokesman said in an email.
John Nester, spokesman for the U.S. Securities and Exchanges Commission said the regulatory body is keeping an eye on the situation. "We are monitoring the situation and are in close contact with the exchanges," Nester said in an email.
This is not the first time that Nasdaq has run into problems with the UTP SIP.
In January, Nasdaq briefly shut down trading while it investigated that cause for stale data on UTP SIP. The problem resulted in Nasdaq-listed trades not being recorded in real-time according to a description of the problem by Securities Technology Monitor.
Jaikumar Vijayan covers data security and privacy issues, financial services security and e-voting for Computerworld. Follow Jaikumar on Twitter at @jaivijayan, or subscribe to Jaikumar's RSS feed . His email address is firstname.lastname@example.org.
Read more about Financial IT in Computerworld's Financial IT Topic Center.
- 15 Non-Certified IT Skills Growing in Demand
- How 19 Tech Titans Target Healthcare
- Twitter Suffering From Growing Pains (and Facebook Comparisons)
- Agile Comes to Data Integration
- Slideshow: 7 security mistakes people make with their mobile device
- iOS vs. Android: Which is more secure?
- 11 sure signs you've been hacked
Something-something “LASER” something-something-something.
The MtGox Bitcoin exchange is bankrupt. Not a huge surprise, but insiders are also alleging chronic incompetence within the company, flowing from the CEO, Mark Karpeles. Supposed hackers have also leaked some PHP code that appears to substantiate those allegations. But could it all be an elaborate ruse to steal customers'
MtGox Co., Ltd. is now aiming for "civil rehabilitation" in a Tokyo District Court (similar to Chapter 11 bankruptcy protection in the U.S.).
In IT Blogwatch, bloggers release the frickin’ ill-tempered, mutated sea bass.
- IT Certification Study Tips
- Register for this Computerworld Insider Study Tip guide and gain access to hundreds of premium content articles, cheat sheets, product reviews and more.
- Changing the Way Government Works: Four Technology Trends that Drive Down Costs and Increase Productivity
- This paper discusses four technology-based approaches to improving processes and increasing
productivity while driving down department and agency costs.
- Accelerating Speed to Market in the Highly Competitive Automotive Industry
- This White Paper discusses how an Enterprise Project Portfolio Management solution optimizes project analysis, management, reporting and risk mitigation processes to accelerate new...
- ERP in the Cloud and the Modern Business
- View IDC's White Paper, to review IDC CloudTrack Survey findings, gain expert insight into the challenges and opportunities the cloud presents, and determine...
- Financial Security: What smaller Institutions can learn from DDoS attacks on big banks
- Since last fall, several waves of distributed denial of service (DDoS) attacks have targeted major players in the U.S. banking industry. JPMorgan Chase,...
- Mobile Policy Checklist
- Here's what to consider when putting together a mobile policy designed to support a highly productive workforce. All Financial IT White Papers
- Mobile Apps and Devices Slash Customer Cycle Time Consolidated Engineering Laboratories' field employees used to collect data on triplicate forms that were sometimes hard to read and difficult to manage. After...
- Cloud Knowledge Vault Learn how your organization can benefit from the scalability, flexibility, and performance that the cloud offers through the short videos and other resources...
- Testimonial: Cystic Fibrosis Trust Peter Hawkins, the Head of IT for Cystic Fibrosis Trust, discusses the role CommVault's Simpana software platform plays in improving the company's information...
- PST Archiving: What is it and How is it Done? Learn more about what PST data is, the risks relating to it, and how the new PST Archiving feature in the Simpana 10...
- How to Select the Right IoT Platform We are rapidly entering a world where almost everything will be connected to the cloud and managing these connected things and leveraging the...
- All Financial IT Webcasts