A Nasdaq shutdown has shaken up the market, paralyzing it for more than three hours on Aug. 22. According to the Washington Post, the Nasdaq shutdown resumed trading after a technical glitch caused it to halt all trading.
Outside of the shutdown in trading, the biggest questions concern the stability of the stock exchange itself as they become more automated. One longtime trader said moments like this prove that the new world of electronic trading is not a very good system right now.
According to CNBC, the Nasdaq shutdown began at 12:14 p.m. EST, and by the time it started up again, the shutdown was the longest in recent memory. However, despite the shutdown, Nasdaq promised that all orders would be carried out and they will not cancel any orders on the book. Anyone who wanted to cancel their orders needed to do it before the resumption of trading.
Sal Arnuk, the co-founder of Themis Trading, said that everyone jumping back online at the same time would cause more damage than the shutdown itself.
Business Week suggested that it was time for the electronic markets to shape up after the Nasdaq shutdown or face stronger regulations. Rumors have it that the shutdown was for something as simple as printing data to the public tape, something that was a basic function which should never have caused this panic.