New York Stock Exchange blames ‘manual error’ for trading glitch

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New York CNN—

New York Stock Exchange officials said Wednesday that manual error was responsible for the massive price swings and halt in trading of hundreds of company stocks that punctuated the market open on Wednesday. tuesday.

The root cause of the error, which the exchange says has been resolved, was an error related to the company’s disaster recovery configuration, they said. It looks like a manual test of their emergency system went wrong.

In total, more than 1,300 trades and 84 stocks were impacted by the error and marked as abnormal, according to the NYSE. The exchange also said 4,341 trades across 251 stock symbols would need to be halted or cancelled.

Some of the biggest financial institutions, retailers, communications and industrial companies were affected by the issue on Tuesday, including McDonalds, Walmart and Exxon Mobil, according to the NYSE.

Many of these stocks made big moves Tuesday just minutes into the morning trading session, sending some stocks into a tailspin.

Shares generally open for trading on the NYSE at 9:30 a.m. ET, and each share receives an opening price that is determined by a complicated system that uses the thousands of orders that have accumulated overnight and early in the morning. morning before the opening bell.

The exchange compiles these buy and sell orders and formats a single price which is then quoted when the market opens. The price is intended to balance supply and demand for the stock and limit volatility in early trading.

Exchange officials said that pricing process did not take place on Tuesday for a number of those stocks. This meant that these stocks were opening with supply and demand imbalances at prices far removed from their Monday close.

All exchange systems are operational and a normal opening for January 25, 2023 is expected, the NYSE said in a statement Wednesday morning.

The Securities and Exchange Commission, meanwhile, said it was reviewing the matter. A spokesperson told CNN on Wednesday that staff are reviewing the activity and have been in contact with the affected exchanges.

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