A problem with a key system caused trading pauses for 49 symbols listed on group exchanges.
Equities trading via the New York Stock Exchange (NYSE) got off to a rocky start on Monday, June 3, causing transaction halts for as many as 40 symbols listed on NYSE Group exchanges, officials say. The glitch was resolved before Noon EST.
“After the market opened on the morning of June 3, 2024, a technical issue involving industry-wide price bands published by the Consolidated Trade Association’s Securities Information Processor triggered ‘limit-up/limit down’ trading halts on up to 40 symbols listed on NYSE Group exchanges,” a NYSE spokesperson tells FTF News, in a prepared statement.
“Limit up is the maximum amount a price is permitted to increase during one trading day,” according to an explanation on the website Investopedia. “Limit down, by contrast, refers to the maximum permitted decline in one trading day. Both limit up and limit down prices are examples of circuit breakers — interventions employed by exchanges to help maintain orderly trading conditions.”
“We are currently evaluating which LULD halts were erroneous (i.e., caused by erroneous bands published by the CTA SIP) versus correct halts resulting from correct price bands. Halts determined to have been caused by erroneous bands will be considered for potential busts,” according to one NYSE alert.
“To resolve the issue, CTA failed over to the secondary data center, which is operating on the previous version of the software,” according to a NYSE update.
There were “49 symbols that were subject to trading pauses between 9:30 a.m. and 10:27 a.m. were potentially impacted by erroneous price bands due to this software release. … CTA is restoring the previous version of the software in the primary data center and will be running out of the primary data center on Tuesday, June 4, 2024,” according to another update.
“Shortly before noon, the issue was resolved and trading in the impacted stocks resumed. … The NYSE is reviewing potentially impacted trades,” the spokesperson says.
Here is a link to the list of affected trades: https://bit.ly/3wXY84v
More details about the halt can be found here: https://bit.ly/3KtA0K7
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