A technical glitch caused a Nasdaq shutdown for 3 hours. A stock quotes were unavailable for a time due to a problem. According to Reuters on August 22, 2013, the Securities Information Processor (SIP) was at fault.
Nasdaq resumed trading at around 3:25 p.m. EDT (1925 GMT), after a 3-hour, 11-minute shutdown of trading.
This Nasdaq shutdown was the longest in recent history. The issues were fixed within 30 minutes. Around noon New York time, trading on Nasdaq stopped. The SIP was not distributing stock price quotes as normal. By 3 p.m. trading resumed in at least one security.
The Nasdaq shutdown was monitored closely by both the White House and the Securities and Exchange Commission (SEC) today. Initial panic turned to frustration among clients of many banks during the outage. After many down days in a row, this was perceived as another threat to confidence in the markets.
Many sources at securities trading firms mentioned that it would be better to be closed in order to fix any problems, than to reopen the markets too soon. With such a high level of automation these days and the removal of much of the human factor from the trading equation, it is thought that Nasdaq outages like this one are more likely to happen.
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