New York
CNN
—
The New York Stock Exchange is investigating why trading was briefly halted for dozens of firms Tuesday simply after the market opened.
Major names impacted included Verizon, McDonald’s, Morgan Stanley, AT&T and Nike, in accordance to the NYSE.
Many of these shares made massive strikes simply minutes into the morning trading session, sending firms like Wells Fargo and Morgan Stanley right into a nosedive.
Morgan Stanley briefly plunged to $84.93 after ending at $97.13 on Monday earlier than recovering. McDonald’s and Walmart additionally fell greater than 12% earlier than trading was halted. Those drops could have triggered volatility halts on the trade.
NYSE, and most different main inventory exchanges, subject automated halts for shares that transfer dramatically up and down.
In May 2010, the Dow plunged throughout a “flash crash,” earlier than dramatically rebounding. A report by US regulators later mentioned the large swing was the results of high-frequency trading exercise following an enormous commerce by a single market participant. That sparked quite a few regulatory modifications aimed toward safeguarding the fairness markets, together with a “limit up-limit down” mechanism that prevents trades in particular person shares from swinging outdoors a selected worth band.
But trade officers can even halt trading when there’s a technical downside. Last fall, three Canadian inventory exchanges suffered a 40-minute outage as a consequence of a “connection issue,” earlier than the trade was able to isolate and repair the problem.
By 9:50 a.m. ET Tuesday all affected firms on the NYSE had resumed trading, in keeping with a standing report from the NYSE that mentioned “all systems are currently operational.”
NYSE officers informed CNN the trade “continues to investigate issues with today’s opening auction.”
In a emailed assertion, trade officers mentioned opening auctions “did not occur” for quite a few shares. The trade, they wrote, is working to make clear which shares had been impacted.
“Impacted member firms may consider filing for Clearly Erroneous or Rule 18 Claims,” they added, that means firms that noticed their shares halted can search reimbursement for losses ensuing from NYSE system failures.