Test data blamed for wild swings in Nasdaq-listed stocks

Test data blamed for wild swings in Nasdaq-listed stocks

Erroneous test data provided by third party vendors caused wild swings on prominent Nasdaq stocks in after hours trading on the eve of the 4 July US holiday celebrations.

The prices of several stocks appeared on some major finance websites to either spike or plummet after market close, with more than a dozen major Nasdaq listed companies such as Apple, Amazon, Google and Microsoft all set to the same share price of $123.47.

"As part of its normal process, the UTP distributed test data and certain third parties improperly propagated the data. Nasdaq is working with third-party vendors to resolve the matter,” says the exchange operator in a statement.

The release of the bogus data to prominent sites such as Yahoo, Google and Bloomberg caused confusion in the market, with shares in Microsoft appearing to fall by 50%, while Apple's stock showed a 348% spike.

The actual prices of the stocks were not affected and no trades were completed at that price, a Nasdaq spokesman confirms.

Comments: (1)

Ketharaman Swaminathan
Ketharaman Swaminathan - GTM360 Marketing Solutions - Pune 05 July, 2017, 16:09Be the first to give this comment the thumbs up 0 likes

In this day and age of low latency algo trading, curious to know how the Nasdaq spokesman asserts so confidently that "no trades were completed" at the wrong prices!

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