10 Trading Glitches That Stopped The Markets
8. Nasdaq’s Flash FreezeOn Thursday, August 22, 2013 NASDAQ OMX called for a halt in trading after it was discovered price quotes were not being disseminated properly. The glitch shut down the exchange for 3 hours, despite reports that the problem was identified and resolved in the first 30 minutes. Trading continued as usual once the exchange was restored.
The incident, which lasted between just after noon until 3:15pm is being called a “flash freeze.” The extent of the trading loss remains to be seen, and the industry is debating the consequences for Nasdaq, both in fines and reputation.
According to The Wall Street Journal, "Nasdaq officials internally pointed to a "connectivity" problem with rival NYSE Arca," but that Nasdaq's team should have been able to remedy the issue and avoid a halt in trading.