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.
Crafty hackers hack craft stores -- again.
Michaels Stores (NYSE:MIK) has finally confirmed the details of the point-of-sale hack revealed in January. It's unclear what's taken them so long -- the company claims the hack was "highly sophisticated," but everyone uses a blah-blah phrase like that.
Your humble blogwatcher notes that the problem persisted for more than a month after the news first broke. smh.
In IT Blogwatch, bloggers are aghast that, for the second time, the company's POS was hacked -- lasting almost nine months.
- 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.
- The Big Data Opportunity for HR and Finance
- If CEOs, CFOs, CIOs, and CHROs want to drive their businesses forward, they will need to quickly recognize the enormous value of big...
- Manufacturing Outlook: Improving time to market, operational effectiveness and innovation in a highly competitive environment
- An enterprise project portfolio management solution can help manufacturers position themselves in the new competitive landscape.
- Time-to-Market: The Need for Speed in the Automotive Industry
- Bringing new vehicles to market quickly has never been more challenging. To bring new models to market on-time and on budget, automakers need...
- Application Rationalization Scorecard: Analysis to Action
- This paper details a proven method, used most recently to evaluate a financial services application portfolio. At the method's core is the scorecard....
- 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.
All Financial IT White Papers
- 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...
- LIVE EVENT: 5/7, The End of Data Protection As We Know It. Introducing a Next Generation Data Protection Architecture. Traditional backup is going away, but where does this leave end-users?
- On-demand webinar: "Mobility Mayhem: Balancing BYOD with Enterprise Security" Check out this on-demand webinar to hear Sophos senior security expert John Shier deep dive into how BYOD impacts your enterprise security strategy...
- Mobile Security: Containerizing Enterprise Data In this on-demand webinar, Fixmo's Lee Cocking, VP of corporate strategy, explains why Apple-ization trends like mobility and "bring-your-own-device" (BYOD) are driving the...
- Endpoint Data Management: Protecting the Perimeter of the Internet of Things Not surprisingly, "Internet of Things" (IoT) and Big Data present new challenges AND opportunities for enterprise IT. Teams need to harness, secure and...
- All Financial IT Webcasts