Nasdaq Fixes Malfunction With Price Feed That Prompted Halt
(Bloomberg) -- For the second time in two weeks, a malfunction in a price feed overseen by Nasdaq OMX Group Inc. led to a trading halt of some of the companies it lists.Nasdaq’s securities information processor had a “hardware memory failure” at 11:35 a.m. New York time today, the company said after a preliminary review. The issue was resolved six minutes later. Direct Edge Holdings LLC, another U.S. exchange operator, briefly stopped transactions for some Nasdaq-listed shares, according to a statement.
Nasdaq halted trading in thousands of its stocks for three hours on Aug. 22 out of concern a connectivity issue in the feed, known by its initials SIP, would cause uneven dissemination of prices in the market. The disruption underscored how quickly the integrity of the U.S. market can be subverted as orders to buy and sell shares are matched on more than 50 exchanges and alternative electronic venues.
“We are not inspired by the fact that this has become a recurring issue,” Peter Sorrentino, a senior vice president who helps manage about $15 billion at Huntington Asset Advisors, said by phone from Cincinnati. “This type of thing does an awful lot to kill investor confidence in the markets.”
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