NYSE network failure disrupts trading

Trading on the New York Stock Exchange (NYSE) was disrupted temporarily yesterday due to problems with its data processing network.

The NYSE said in a statement to markets that an “issue” with its securities information processor (SIP) system was to blame for difficulties publishing and receiving trades and quotes.

The data processing failure created problems for traders in cash and options markets for approximately half an hour, before systems returned to normal.

The glitch related to its National Market System securities information processor, a network used to supply trades and quotes.

The reliability of SIP systems has come under scrutiny from regulators in the past year, following a three-hour halt to trading on Nasdaq’s markets in August 2013. The problems arose due when its SIP data feed system was flooded with an ‘unprecedented’ volume of orders, with the outage affecting more than 2,000 companies trading in Nasdaq-listed securities.

US regulator the Securities and Exchange Commission subsequently launched an investigation into trading safeguards, demanding a number of measures such as putting ‘kill-switches’ in place in the event of unexpected problems.

Copyright © 2014 IDG Communications, Inc.

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