Tags: NYSE | stock | exchange | price

NYSE Had Malfunction in Price Feed for US-Traded Equities

Thursday, 30 October 2014 04:58 PM

The computer system that carries prices for thousands of equities listed by the New York Stock Exchange malfunctioned Thursday, sowing confusion among traders. The market operator later said the issue had been resolved.

The oldest American exchange reported an “ongoing issue with the NMS SIP,” or the securities information processor for NYSE stocks, at about 1:40 p.m. in New York. Two NYSE venues were “experiencing issues publishing and receiving trades and quotes,” the alert said. A notice 10 minutes later said the markets were processing trades and quotes normally.

Scrutiny was trained on systems for transmitting prices in the stock market last year after a breakdown in the processor run by the Nasdaq Stock Market resulted in a three-hour halt that froze trading in thousands of securities. While traders saw erratic moves in some stocks and options today, they said the issue looked less widespread.

“Thank God there’s not too much volatility and it’s kind of boring today,” Frank Ingarra, head trader at Greenwich, Connecticut-based NorthCoast Asset Management LLC, said by phone. “It may be an issue in thinly traded names, but for a bigger, more liquid names, people will find ways to trade them.”

The disruption also affected the industrywide service for distributing U.S. equity options prices, known as Opra.

The Tapes

Nasdaq and the NYSE, the venues where almost all U.S. companies go public, each operate SIPs that receive quotes and trades from around the country and disseminate them in three groups, known as tapes. NYSE operates Tapes A and B, and Nasdaq runs Tape C.

The securities information processor transmits stock prices and quotes for NYSE-listed companies such as Exxon Mobil Corp. as well as the $182 billion exchange-traded fund tracking the Standard & Poor’s 500 Index. When the computer system isn’t working properly, it can interfere with traders’ ability to get timely information on prices.

“The bottom line is always confidence. Are the systems being upgraded?” Joe Saluzzi, co-head of equity trading at Chatham, New Jersey-based Themis Trading LLC, said by phone. “The big issue with SIP is whether or not it’s being properly maintained, or the exchanges are paying more attention to the direct feed. In the end, it’ll dent the confidence in the public market.”

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The computer system that carries prices for thousands of equities listed by the New York Stock Exchange malfunctioned Thursday, sowing confusion among traders.
NYSE, stock, exchange, price
371
2014-58-30
Thursday, 30 October 2014 04:58 PM
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