Three Hour NASDAQ Shutdown Reminds U.S. of Market Fragility
Stock traders found themselves in the dark as NASDAQ was forced to shut down for three hours Thursday afternoon due to an identified computer problem.
United States trade market NASDAQ is home to over 3,000 stocks include well-known companies in many areas of commerce from the business of Technology to food industries. Once again Thursday afternoon the nation was reminded of just how fragile the stock exchange has become, as it is increasingly reliant on electronic trade sources and digital revenue.
Investors attempting to trade in other markets found the shut down of the world’s second largest trade market made any fiscal decisions impossible. Traders remarked that without the prices currently listed on NASDAQ, the risks of trade in other markets were too high and similar to trading dollars in the dark. The effects of the blackout were felt up and down Wall Street, sending concerned investors into a worried state.
Although the shut down disrupted daily trade on an increasing rapid market, most reported no losses despite the over three hour pause. However many reported very little revenue was exchanged and minimal money made. Officials are relieved that this blackout in trade occurred during August, one of the slowest months of the fiscal year for Wall Street.
NASDAQ officials have released reports concerning the origin of the problem, tracing the source to an issue with the data systems that rapidly circulate prices. The cause of the problem has been identified and immediately corrected. This new issue with computerized trading is just a number in a line of previous problems the digital trade community has experienced including the delay in release of Facebook shares due to technical problems and even the “Flash Crash” of 2010.
Technical flaws bombarding the digital trade computer systems have demonstrated multiple times that the problems are not only persistent but appear to be getting worse. Work continues by teams of regulators and market participants to strengthen their computerized trading systems in hopes of ending these vulnerabilities in Wall Street. Some brokers feel that the issues with computer systems will continue to increase until teams begin attacking the real problems instead of simply patching up holes when they create a problem.
Trading resumed at 3:30 pm and the market ended on a high note, up 1.1% in spite of the temporary pause in daily trade business. The flat lined prices during system downtime is a frightening reminder to the trade community that more problems lay ahead if each member does not begin to tackle its digital troubles. The Dow ended up 66 points at close for a daily total of 14,963.74 seemingly unshaken by the glitch.