Circuit breaker technology triggered by Anadarko share bid

8 July 2010

Transactions on shares held by Anadarko were briefly paused by circuit breaker technology on the New York Stock Exchange (NYSE) following an irregular trade.

According to reports, the halt took place on Tuesday (July 6th) after an offer to buy 200 shares for $99,999.09 was made.

Trading stopped for five minutes before being restarted at 11:01 EST.

The bid, which followed a trade of $39, was cancelled two minutes later.

It was the third instance of trading on the NYSE being halted by new circuit breaker technology after errors involving shares belonging to the Washington Post and Citigroup during recent months.

Writing on the Themis Trading blog, Joe Saluzzi said that the use of the technology is “getting ridiculous”.

“Halting a stock sends a very powerful message. It tells the public that markets cannot be trusted and regulators need to step in to calm the situation down. Trading halts should only be used when absolutely necessary”, he suggested.

The circuit breaker technology was introduced to the NYSE earlier in the year after a ‘flash crash’ in the Dow Jones Industrial Average index which saw a fall of almost 1,000 points on May 6th.

By Jim Ottewill

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