The New York Stock Exchange Thursday blamed a botched software upgrade for causing a nearly four hour outage at the exchange. Kaja Whitehouse reports. Michael Monday
The New York Stock Exchange Thursday blamed a botched software upgrade for causing a nearly four hour outage at the exchange.
The New York Stock Exchange said it began upgrading its systems Tuesday night to get ready for a new timestamp regulatory requirement.
Troubles began at 7 a.m. ET Wednesday as traders started to connect to the system. Traders ran into difficulty connecting their systems with the upgraded NYSE systems.
Just before the market opened at 9:30 a.m., connections between the NYSE and traders’ computers were updated. But that update “caused additional communications issues” that only worsened.
At 11:09 a.m., the NYSE issued a warning it was investigating the technical problems. And then by 11:32 a.m., traders were still noticing “unusual system behavior” leading the NYSE to suspend trading on the floor of the stock exchange.
After the orders were suspended, any outstanding orders placed on the NYSE were canceled, systems were restarted and trading was shifted to backup units at the NYSE’s Mahwah, N.J., data center so trading could resume. Smaller company stocks were trading again at 3:05 p.m. and NYSE primary listings resumed at 3:10 p.m.
The fact U.S. listed stocks continued trading all day Wednesday – despite a halt at the NYSE – is considered to be a victory of the redundancies of the market structure.