(Bloomberg) – Nasdaq said it has resolved a technical glitch that disrupted premarket trading for about three hours on the exchange that hosts Apple, Nvidia and others.
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“The Nasdaq Stock Market has resolved a previous matching engine issue and all systems are operating normally,” a statement on the exchange's website said. “Nasdaq intends to provide a full post-mortem when available.”
A Nasdaq spokesperson did not respond to a request for comment outside of normal U.S. business hours.
According to the website description, the electronic exchange uses a matching engine to facilitate price discovery. The exchange previously announced that all unauthorized orders for “Rash FIX” have been canceled and returned to customers. RASH (Routing and Special Handling) is a technology for matching buy and sell orders.
This is the second turmoil in the Nasdaq market in about three months. Nasdaq faced a system error in December that affected thousands of stock orders, causing some to be canceled and incorrect liquidation information to be sent. People familiar with the matter said at the time that the exchange operator was investigating order entry issues that caused inaccuracies and delays.
Disruptions on U.S. exchanges were rare before December. Other examples include a computer glitch in 2013 that resulted in his thousands of Nasdaq-listed securities being frozen for three hours. Before that, in 1994, a squirrel chewed a power line in Shelton, Conn., cutting off power near Nasdaq's main computer facility and indirectly halting trading for about 40 minutes.
No trades were recorded on the Nasdaq Global Market from about 4:09 a.m. to about 7:03 a.m. in New York on Monday, according to Bloomberg trading data. Tickers for stocks including Nvidia and Apple were still printing trades via other platforms, including the NYSE Arca Exchange. The Nasdaq typically handles the majority of trading volume for stocks listed in its tech stock index.
Other exchanges, including the NYSE and NYSE Arca Equities, earlier declared self-help against the Nasdaq. This is a notice issued when another exchange addresses an internal issue with trade processing and an order is routed through the alternative exchange. Cboe Global Markets Inc. announced that its EDGX stock exchange has disabled routing to Nasdaq.
Harry Henage, sales trader for KCx at Kepler Cheuvreux in London, said clients had mentioned problems with pre-market trading in the United States. Nasdaq 100 futures and options trading is operated by CME Group.As of 7:47 a.m. in New York, the Nasdaq 100 was up 1.1%.
–With assistance from Thyagaraju Adinarayan, Tuhin Kar, Julien Ponthus, and Matt Turner.
(Adds new Nasdaq statement regarding issue resolution.)
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