A Nasdaq shutdown ground the U.S. stocks trade to a halt this Thursday, as Yahoo! reported this Aug. 22 that a baffling tech issue put Nasdaq securities on hold for over 180 minutes in a 3-hour disturbance that surprised major traders and affected numerous companies.
The Nasdaq shutdown was over sometime after 3:25 p.m., meaning that the 180 minute blackout occurred sometime before noon. The trading disruption affected popular names including Facebook Inc., Apple Inc., Microsoft Corp. and Google Inc., including over 3,000 other companies.
The Thursday shutdown was one of the longest in recent years, and had Mary Jo White, who serves as the chair of the U.S. Securities and Exchange Commission, decide to call together Wall Street officials to help maintain the “orderly and continuous” maintenance of the market trade.
"Any brokerage firm gets paid by executing orders," said a leader of the equity trading at Themis Trading in Chatham. "So yes, we are frustrated, and this hurts us, it hurts the market and it hurts public confidence."
The tech issue may have been a connectivity error that was caused between the SIP (the Securities Information Processor) and an unnamed exchange member. Prior to the Nasdaq shutdown, the Nasdaq OMX Group Inc. said that trading had ground to halt after discovering that stock prices were not being disseminated into proper price quotations.
Nasdaq added that although initial technical problems were located and fixed in less than an hour, it worked with a variety of other market participants, exchanges, and regulators before power was brought back on and the resumption of stock trading could continue.
"The general feedback given to Nasdaq was, 'Don't rush back to fix it, it will be 10 times worse to come back online in a rush than to take time and get it right,'" concluded one insider.