{"id":108,"date":"2023-01-25T17:12:58","date_gmt":"2023-01-25T22:12:58","guid":{"rendered":"https:\/\/embarrdowns.com\/?p=108"},"modified":"2023-01-25T17:12:59","modified_gmt":"2023-01-25T22:12:59","slug":"nyse-experiences-brief-trading-halt-due-to-manual-error","status":"publish","type":"post","link":"https:\/\/embarrdowns.com\/nyse-experiences-brief-trading-halt-due-to-manual-error\/","title":{"rendered":"NYSE Experiences Brief Trading Halt Due to Manual Error"},"content":{"rendered":"

On Tuesday, January 24th, the New York Stock Exchange (NYSE) experienced a technical issue that led to a brief trading halt for dozens of major companies just after the market opened.[0]<\/a><\/sup> The exchange determined that 4,341 trades in 251 ticker symbols should be “busted.”[0]<\/a><\/sup> Most of the trade breaks were processed on January 24th and the rest were expected to be processed the following day.[1]<\/a><\/sup><\/p>\n

At 9:50 a.m.[2]<\/a><\/sup> ET, the NYSE reported that all affected companies had resumed trading, with all systems back and operational.[2]<\/a><\/sup> A statement from the exchange revealed that the root cause of the glitch was a manual error involving the Exchange’s Disaster Recovery configuration.[3]<\/a><\/sup><\/p>\n

The NYSE then issued a follow-up statement that said that a Sell Short Restriction (SSR) had been erroneously triggered in a subset of NYSE listed symbols.[4]<\/a><\/sup> This SSR was deactivated for Wednesday’s trading.[5]<\/a><\/sup><\/p>\n

The companies affected included big names like Altria, Mastercard, McDonalds, Uber, Wells Fargo, Verizon, Rio Tino, Shell, AT&T, Lilly, Mosaic, Wells Fargo, Nike, Nucor, Transocean, Prudential, 3M, Newmont Mining, Southern, Union Pacific, Sony, United Parcel Service, Altria, Valero Energy, Occidental Petroleum, Royal Dutch Shell, MetLife, Visa, Walmart, and Exxon Mobil.[6]<\/a><\/sup><\/p>\n

The wild price swings and halts were triggered due to a limit up\/limit down (LULD) bands being published immediately after the stocks opened that determined at what price a stock would be halted due to volatility.[7]<\/a><\/sup> If a stock traded above or below the bands, it would be halted.<\/p>\n

The NYSE then noted that any trades in NYSE-listed symbols that did not conduct an opening auction and both occurred before 9:30:00 AM but before the receipt of LULD bands 9 (generally less than a second later) and executed at a price exceeding percentage parameters from the reference price (as defined in NYSE rules), will be declared “null and void.”[8]<\/a><\/sup><\/p>\n

NYSE Chief Operating Officer Michael Blaugrund said in a statement, \u201cSuch events are extremely rare, and we are thoroughly examining the day\u2019s activity to assure the highest level of resilience in our systems.[9]<\/a><\/sup> We ended the day with a normal market close and expect a regular open on Wednesday.[10]<\/a><\/sup><\/p>\n

0. <\/span>“NYSE: Stock trading glitch caused by Sell Short Restriction manual error” UPI News, 25 Jan. 2023, https:\/\/www.upi.com\/Top_News\/US\/2023\/01\/25\/NYSE-glitch-sell-short-restriction\/9881674660480\/<\/a><\/a><\/p>\n

1. <\/span>“NYSE glitch caused by manual error, 4.3K trades declared void” Seeking Alpha, 25 Jan. 2023, https:\/\/seekingalpha.com\/news\/3927784-nyse-glitch-caused-by-manual-error-43k-trades-declared-void<\/a><\/a><\/p>\n

2. <\/span>“NY stock exchange halted as technical issues cause major opening delay” Express, 24 Jan. 2023, https:\/\/www.express.co.uk\/news\/us\/1725633\/NYSE-stock-exchange-halted-Morgan-Stanley-Verizon-market-open-delay-dxus<\/a><\/a><\/p>\n

3. <\/span>“The Cause of the NYSE Issue Was a Manual Error” TipRanks, 25 Jan. 2023, https:\/\/www.tipranks.com\/news\/the-cause-of-the-nyse-issue-was-a-manual-error<\/a><\/a><\/p>\n

4. <\/span>“NYSE Says Short-Selling Restrictions Responsible for Technical Glitch” Barron’s, 25 Jan. 2023, https:\/\/www.barrons.com\/articles\/nyse-halts-stocks-technical-trading-51674572058<\/a><\/a><\/p>\n

5. <\/span>“NYSE Briefly Halts Trading in Dozens of Stocks” Barron’s, 24 Jan. 2023, https:\/\/www.barrons.com\/articles\/nyse-halts-stocks-51674572058<\/a><\/a><\/p>\n

6. <\/span>“New York Stock Exchange investigates ‘technical issue’ that briefly halted some trading” CNN, 24 Jan. 2023, https:\/\/www.cnn.com\/2023\/01\/24\/investing\/nyse-halt-stocks\/index.html<\/a><\/a><\/p>\n

7. <\/span>“NYSE’s Tuesday trading glitch explained” CNBC, 24 Jan. 2023, https:\/\/www.cnbc.com\/2023\/01\/24\/nyses-tuesday-trading-glitch-explained-why-some-of-the-trades-may-be-busted.html<\/a><\/a><\/p>\n

8. <\/span>“New York Stock Exchange system issue caused trading pauses at open (NYSE:ICE)” Seeking Alpha, 24 Jan. 2023, https:\/\/seekingalpha.com\/news\/3927386-new-york-stock-exchange-system-issue-caused-trading-pauses-at-open<\/a><\/a><\/p>\n

9. <\/span>“NYSE claims technical glitch for early trading issues” The TRADE News, 25 Jan. 2023, https:\/\/www.thetradenews.com\/nyse-claims-technical-glitch-for-early-trading-issues\/<\/a><\/a><\/p>\n

10. <\/span>“NYSE glitch affected more than 250 stocks, caused large price swings” Markets Insider, 25 Jan. 2023, https:\/\/markets.businessinsider.com\/news\/stocks\/nyse-glitch-morgan-stanley-wells-fargo-stocks-price-swings-2023-1<\/a><\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

On Tuesday, January 24th, the New York Stock Exchange (NYSE) experienced a technical issue that led to a brief trading halt for dozens of major companies just after the market opened.[0]<\/a><\/sup> The exchange determined that 4,341 trades in 251 ticker symbols should be “busted.”[0]<\/a><\/sup> Most of the trade breaks were processed on January 24th and the rest were expected to be processed the following day.[1]<\/a><\/sup><\/p>\n

At 9:50 a.m.[2]<\/a><\/sup> ET, the NYSE reported that all affected companies had resumed trading, with all systems back and operational.[2]<\/a><\/sup> A statement from the exchange revealed that the root cause of the glitch was a manual error involving the Exchange’s Disaster Recovery configuration.[3]<\/a><\/sup><\/p>\n

The NYSE then issued a follow-up statement that said that a Sell Short Restriction (SSR) had been erroneously triggered in a subset of NYSE listed symbols.[4]<\/a><\/sup> This SSR was deactivated for Wednesday’s trading.[5]<\/a><\/sup><\/p>\n

The companies affected included big names like Altria, Mastercard, McDonalds, Uber, Wells Fargo, Verizon, Rio Tino, Shell, AT&T, Lilly, Mosaic, Wells Fargo, Nike, Nucor, Transocean, Prudential, 3M, Newmont Mining, Southern, Union Pacific, Sony, United Parcel Service, Altria, Valero Energy, Occidental Petroleum, Royal Dutch Shell, MetLife, Visa, Walmart, and Exxon Mobil.[6]<\/a><\/sup><\/p>\n

The wild price swings and halts were triggered due to a limit up\/limit down (LULD) bands being published immediately after the stocks opened that determined at what price a stock would be halted due to volatility.[7]<\/a><\/sup> If a stock traded above or below the bands, it would be halted.<\/p>\n

The NYSE then noted that any trades in NYSE-listed symbols that did not conduct an opening auction and both occurred before 9:30:00 AM but before the receipt of LULD bands 9 (generally less than a second later) and executed at a price exceeding percentage parameters from the reference price (as defined in NYSE rules), will be declared “null and void.”[8]<\/a><\/sup><\/p>\n

NYSE Chief Operating Officer Michael Blaugrund said in a statement, \u201cSuch events are extremely rare, and we are thoroughly examining the day\u2019s activity to assure the highest level of resilience in our systems.[9]<\/a><\/sup> We ended the day with a normal market close and expect a regular open on Wednesday.[10]<\/a><\/sup><\/p>\n

0. <\/span>“NYSE: Stock trading glitch caused by Sell Short Restriction manual error” UPI News, 25 Jan. 2023, https:\/\/www.upi.com\/Top_News\/US\/2023\/01\/25\/NYSE-glitch-sell-short-restriction\/9881674660480\/<\/a><\/a><\/p>\n

1. <\/span>“NYSE glitch caused by manual error, 4.3K trades declared void” Seeking Alpha, 25 Jan. 2023, https:\/\/seekingalpha.com\/news\/3927784-nyse-glitch-caused-by-manual-error-43k-trades-declared-void<\/a><\/a><\/p>\n

2. <\/span>“NY stock exchange halted as technical issues cause major opening delay” Express, 24 Jan. 2023, https:\/\/www.express.co.uk\/news\/us\/1725633\/NYSE-stock-exchange-halted-Morgan-Stanley-Verizon-market-open-delay-dxus<\/a><\/a><\/p>\n

3. <\/span>“The Cause of the NYSE Issue Was a Manual Error” TipRanks, 25 Jan. 2023, https:\/\/www.tipranks.com\/news\/the-cause-of-the-nyse-issue-was-a-manual-error<\/a><\/a><\/p>\n

4. <\/span>“NYSE Says Short-Selling Restrictions Responsible for Technical Glitch” Barron’s, 25 Jan. 2023, https:\/\/www.barrons.com\/articles\/nyse-halts-stocks-technical-trading-51674572058<\/a><\/a><\/p>\n

5. <\/span>“NYSE Briefly Halts Trading in Dozens of Stocks” Barron’s, 24 Jan. 2023, https:\/\/www.barrons.com\/articles\/nyse-halts-stocks-51674572058<\/a><\/a><\/p>\n

6. <\/span>“New York Stock Exchange investigates ‘technical issue’ that briefly halted some trading” CNN, 24 Jan. 2023, https:\/\/www.cnn.com\/2023\/01\/24\/investing\/nyse-halt-stocks\/index.html<\/a><\/a><\/p>\n

7. <\/span>“NYSE’s Tuesday trading glitch explained” CNBC, 24 Jan. 2023, https:\/\/www.cnbc.com\/2023\/01\/24\/nyses-tuesday-trading-glitch-explained-why-some-of-the-trades-may-be-busted.html<\/a><\/a><\/p>\n

8. <\/span>“New York Stock Exchange system issue caused trading pauses at open (NYSE:ICE)” Seeking Alpha, 24 Jan. 2023, https:\/\/seekingalpha.com\/news\/3927386-new-york-stock-exchange-system-issue-caused-trading-pauses-at-open<\/a><\/a><\/p>\n

9. <\/span>“NYSE claims technical glitch for early trading issues” The TRADE News, 25 Jan. 2023, https:\/\/www.thetradenews.com\/nyse-claims-technical-glitch-for-early-trading-issues\/<\/a><\/a><\/p>\n

10. <\/span>“NYSE glitch affected more than 250 stocks, caused large price swings” Markets Insider, 25 Jan. 2023, https:\/\/markets.businessinsider.com\/news\/stocks\/nyse-glitch-morgan-stanley-wells-fargo-stocks-price-swings-2023-1<\/a><\/a><\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[47],"tags":[],"_links":{"self":[{"href":"https:\/\/embarrdowns.com\/wp-json\/wp\/v2\/posts\/108"}],"collection":[{"href":"https:\/\/embarrdowns.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/embarrdowns.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/embarrdowns.com\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/embarrdowns.com\/wp-json\/wp\/v2\/comments?post=108"}],"version-history":[{"count":0,"href":"https:\/\/embarrdowns.com\/wp-json\/wp\/v2\/posts\/108\/revisions"}],"wp:attachment":[{"href":"https:\/\/embarrdowns.com\/wp-json\/wp\/v2\/media?parent=108"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/embarrdowns.com\/wp-json\/wp\/v2\/categories?post=108"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/embarrdowns.com\/wp-json\/wp\/v2\/tags?post=108"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}