17 October 2017
Register now

Nasdaq forced to cancel trades

14 December 2012  |  9186 views  |  1 Nasdaq

Nasdaq OMX was forced to cancel pre-market trades in nine stocks, including Citi and Goldman Sachs, yesterday after they caused huge price swings.

The exchange operator cancelled trades - which happened minutes before the opening of trading - in stocks which saw a move of more than 10% from Wednesday's closing price.

According to Bloomberg, the suspect trades saw Goldman Sachs fall by up to 20% to $94.01 while Hewlett-Packard plunged 79%. Citi, Western Union, Wells Fargo, AT&T, Kroger, Sprint and Ventas also saw wild swings.

The problem was caused by a broker which was making trades based on faulty market data, a source told the Financial Times.

Trading errors and the rise of electronic high-frequency trading have been in the spotlight ever since the May 2010 flash crash while Nasdaq has taken a reputational hit this year thanks to its botched Facebook IPO.

Comments: (1)

Neil Crammond
Neil Crammond - trader - london | 17 December, 2012, 10:22

"fair and orderly markets " are essential to restore market confidence and yet again HFT and uncontrolled speed limits are causing huge damage to our fragile markets .....

  the medicine is simple  but will it be taken !

Be the first to give this comment the thumbs up 0 thumb ups! (Log in to thumb up)
Comment on this story (membership required)

Finextra news in your inbox

For Finextra's free daily newsletter, breaking news flashes and weekly jobs board: sign up now

Related stories

Nasdaq OMX buys 25% stake in Dutch MTF TOM

Nasdaq OMX buys 25% stake in Dutch MTF TOM

11 December 2012  |  4701 views  |  0 comments | 2 tweets | 2 linkedin
Nasdaq blames human error for botched WhiteHorse IPO

Nasdaq blames human error for botched WhiteHorse IPO

06 December 2012  |  6288 views  |  0 comments | 2 tweets
Flash crash reforms will fail to make markets safer - study

Flash crash reforms will fail to make markets safer - study

18 October 2012  |  6812 views  |  1 comments | 3 tweets | 1 linkedin
HFT in the dock as another trading error hits exchanges

HFT in the dock as another trading error hits exchanges

23 August 2012  |  11784 views  |  0 comments
Citi slams Nasdaq OMX over Facebook IPO compensation

Citi slams Nasdaq OMX over Facebook IPO compensation

23 August 2012  |  5464 views  |  0 comments
Knight closes in on $400m rescue deal

Knight closes in on $400m rescue deal

06 August 2012  |  5647 views  |  0 comments
SEC could make Nasdaq OMX upgrade systems over Facebook IPO - WSJ

SEC could make Nasdaq OMX upgrade systems over Facebook IPO - WSJ

29 June 2012  |  5998 views  |  0 comments
Computer systems fingered in flash crash probe

Computer systems fingered in flash crash probe

12 August 2010  |  10235 views  |  0 comments

Related company news

 

Related company information

Goldman Sachs

Related blogs

Create a blog about this story (membership required)
visit www.innotribe.comvisit www.vasco.comvisit www.temenos.com

Top topics

Most viewed Most shared
Ripple looks to drive bank adoption with $300m XRP rebate programmeRipple looks to drive bank adoption with $...
14683 views comments | 12 tweets | 3 linkedin
Swift positive on blockchain, but big challenges remainSwift positive on blockchain, but big chal...
8092 views comments | 15 tweets | 21 linkedin
Ripple blockchain network hits 100-member markRipple blockchain network hits 100-member...
7709 views comments | 13 tweets | 13 linkedin
hands typing furiouslyHow artificial intelligence can deliver a...
7324 views 0 | 7 tweets | 9 linkedin
satelliteGates Foundation backs Ripple collaboratio...
6576 views comments | 13 tweets | 6 linkedin

Featured job

A minimum of £200K (not a limiting factor)
London

Find your next job