During early morning trading on Tuesday, January 24th the New York Stock Exchange experienced a severe “technical” issue which caused some very erratic pricing amongst approximately 200 stocks.
The issue started at the open of the Exchange at 9:30 a.m. ET. The NYSE said a “system issue” prevented the opening auction in a group of its listed securities. This “issue” caused mass confusion over whether orders were being filled at correct prices and prompted widespread trading halts.
Because many of the impacted stocks were not given an “opening price” these names then made large moves just minutes in the morning session sending many names into a nosedive within seconds. This nosedive was caused because these shares opened with supply and demand imbalances at prices very far from where they closed the previous trading day.
Ultimately, the impacted stocks, which began trading without an opening print that caused these mis- quoted prices and trade imbalances, those trades executed during that time will be null and void by the Exchange.
The exact cost of this glitch is unclear, but the real cost will be fell by brokers and traders and will likely be in the eight-figure range.
Here is the statement from the NYSE
Jeffrey Beamer, February 3 2023
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