Nasdaq halted stock trading due to computer breakdowns in the form of malfunctioning software that feeds the data between exchanges plagued the American equity markets today. Nasdaq Stock Market screeched to a halt trading in thousands of stocks and options. The Nasdaq resumed trading shortly after 3 p.m., but a good chunk of the day left traders with customer orders they couldn't execute as nothing was moving, according to MSN Money on Aug. 22.
There was a plan to resume trading on the Nasdaq along with a timeline. The plan called for all its listed stocks to resume by about 3:25 p.m. following a 15-minute quote-only period, according to a statement on the Nasdaq website. Shares of Atlantic American Corp, a single stock, resumed trading at about 3 p.m., and the rest of the market was expected to begin trading by 3:25 p.m. EST.
Nasdaq reported earlier that issues at its Securities Information Processor, the feed that disseminates quotes and prices, prompted the trading in shares it lists to be stopped. Nasdaq, which is the second-biggest stock market operator in the U.S., halted what they call Tape C transactions, which comprises all Nasdaq-listed securities.
Some of the country's most heavily traded shares, like Facebook, Apple and Intel Corp were not accessible for buying or selling when the Nasdaq stopped on a dime leaving traders with customer orders and no way to execute them. It was shortly after the stroke of noon when the Nasdaq 100 equity index stopped moving, according to data compiled by Bloomberg. The Dow Jones Industrial Average continued to update.
Sal Arnuk, co-head of equity trading at Themis Trading in Chatham, New Jersey told MSN what the abrupt halt and the afternoon hiatus on trading met for him and his colleagues:
"Any brokerage firm gets paid by executing orders. So yes, we are frustrated, and this hurts us, it hurts the market and it hurts public confidence."