New York Stock Exchange, Wednesday, Sept. 14, 2022. AP.
Share trading was briefly halted on the New York Stock Exchange (NYSE) due to a technical glitch on Tuesday.
The
U.S. Securities and Exchange Commission (SEC) said it was investigating
the issue after blue-chip stocks such as McDonald's and Wells Fargo
showed extreme price swings.
More:
- Wells Fargo shares plunged by over 10% while AT&T saw a brief surge before the exchange temporarily halted trading.
- The problem stemmed from affected stocks being traded before the exchange had conducted opening auctions.
- Skipping
the opening auctions meant that the stocks did not
receive accurate “Limit Up Limit Down” bands, which are used to prevent
trading at extreme prices.
- The exchange canceled transactions that were made outside the limits that are usually established.
- NYSE Chief Operating Officer Michael Blaugrund said the exchange was "examining" the issue and that he expected no disruptions on Wednesday.
Zoom Out:
- The technical glitch happened only weeks after the SEC faced pushback for its plans to direct a greater proportion of trades through auction systems like the one at the NYSE.
