Nasdaq forced to cancel trades

Nasdaq forced to cancel trades

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 - DIVENTO FINANCIALS - London 17 December, 2012, 10:22Be the first to give this comment the thumbs up 0 likes

"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 !

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