19 July 2018
Register today

Nasdaq moves to strengthen SIP after second outage

05 September 2013  |  5457 views  |  0 Nasdaq time square New york 2

Nasdaq has outlined a series of steps to improve the resilience of the Securities Information Processor following a second brief outage just weeks after a malfunction in the market data feed forced the exchange to shut down for three hours.

The six-minute outage in the SIP on Wednesday proved a mere hiccup compared to the breakdown late last month, when Nasdaq was forced to halt trading for three hours after a flood of messages from Nyse Arca triggered a software flaw that overwhelmed the processor.

Nasdaq is one of 15 members of the UTP SIP Committee - which determine policy matters and oversee system operations - and is responsible for operating the feed, which provides equities pricing data on Nasdaq-listed securities to market participants.

In a statement following the yesterday's outage, the committee says it has agreed to consider several proposals from Nasdaq designed to tighten the structural framework and provide additional clarity around roles and responsibilities.

It has also moved to the strengthen the SIP technology architecture by implementing a trip switch that will automatically disconnect the front end and back end processors when a failover occurs.

In an effort to improve operational integrity, the SIP will now also manually terminate connections if unusually high traffic is experienced on a single port.

Nasdaq has additionally called on market participants to increase the frequency of stress and failover testing and proposed a formal certification process for any significant code changes by users that may affect interaction with the SIP.

With the SEC on the warpath over last month's outage, the industry is keen to demonstrate the effectiveness of self-governance in ensuring the stability and efficiency of the markets.

In a statement, the UTP SIP Committee says: "Our objective is to learn from the events and work together to identify appropriate solutions that improve the reliability, governance and operations of the SIP."

Comments: (0)

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 blames software bug for outage

Nasdaq OMX blames software bug for outage

30 August 2013  |  6479 views  |  1 comments | 1 tweets | 1 linkedin
SEC promises swift action after trading glitch hits Nasdaq OMX

SEC promises swift action after trading glitch hits Nasdaq OMX

23 August 2013  |  7373 views  |  0 comments | 5 tweets | 2 linkedin
Nasdaq and major banks the victims as five indicted for largest known cyber breach

Nasdaq and major banks the victims as five indicted for largest known cyber breach

26 July 2013  |  8591 views  |  0 comments | 4 tweets | 2 linkedin
Nasdaq bulletin boards breached by hackers

Nasdaq bulletin boards breached by hackers

18 July 2013  |  6393 views  |  0 comments | 3 tweets | 4 linkedin
Nasdaq OMX hit with record $10m fine over Facebook IPO fiasco

Nasdaq OMX hit with record $10m fine over Facebook IPO fiasco

30 May 2013  |  6077 views  |  1 comments | 1 tweets | 1 linkedin
Nasdaq bids to become one of the world's leading technology organisations

Nasdaq bids to become one of the world's leading technology organisations

17 January 2013  |  7355 views  |  3 comments | 5 tweets | 3 linkedin
SEC knocks back Nasdaq algo plans

SEC knocks back Nasdaq algo plans

15 January 2013  |  5302 views  |  0 comments | 3 tweets
Nasdaq suffers data feed glitch

Nasdaq suffers data feed glitch

04 January 2013  |  6986 views  |  0 comments | 3 tweets
Nasdaq forced to cancel trades

Nasdaq forced to cancel trades

14 December 2012  |  9330 views  |  1 comments | 5 tweets | 3 linkedin
Nasdaq blames human error for botched WhiteHorse IPO

Nasdaq blames human error for botched WhiteHorse IPO

06 December 2012  |  6398 views  |  0 comments | 2 tweets
Facebook float tests Nasdaq resilience as stock opening delayed

Facebook float tests Nasdaq resilience as stock opening delayed

18 May 2012  |  6537 views  |  0 comments

Related company news

 

Related blogs

Create a blog about this story (membership required)
Visit info.nice.comVisit https://secure.vasco.comVisit http://go.jumio.com/finextraAd

Top topics

Most viewed Most shared
Calmejane quits Lloyds Bank to join SocGenCalmejane quits Lloyds Bank to join SocGen
11777 views comments | 5 tweets | 7 linkedin
Metro Bank opens developer portalMetro Bank opens developer portal
10034 views comments | 5 tweets | 14 linkedin
Anything Visa can do...Mastercard takes time outAnything Visa can do...Mastercard takes ti...
9691 views comments | 6 tweets | 15 linkedin
Mastercard enlists Worldpay to push Vocalink's Pay by Bank appMastercard enlists Worldpay to push Vocali...
9234 views 19 comments | 14 tweets | 30 linkedin
Hong Kong plans September go-live for blockchain-based trade financeHong Kong plans September go-live for bloc...
8999 views comments | 9 tweets | 17 linkedin

Featured job

Competitive base, double ote, benefits
New York City, NY - USA

Find your next job