Nasdaq OMX trading glitch still under investigation

27 August 2013

An investigation into the reasons behind the trading glitch that forced Nasdaq OMX to suspend trading for three hours on Thursday (22 August) is still ongoing.

The US Securities and Exchange Commission (SEC) will convene a meeting of exchange heads and other market participants after the failure of the Securities Industry Processor (SIP) halted all Nasdaq-listed securities.

SIP is used to consolidate and disseminate price quotes to the wider market.

Nasdaq OMX claims the 30 minute delay happened as it worked with other exchanges, regulators and market participants to re-open trading.

SEC chair Mary Jo White said the trading malfunction that hit the US financial markets will reinforce the collective commitment to address "technological vulnerabilities of exchanges and other market participants".

She went on to say she will work to advance rules that the SEC proposed earlier in 2013 regarding new standards for trading and "other systems that are central to the integrity of our market".

By Claire Archer

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