Wednesday, July 08, 2015

UPDATE: All Trading stopped on New York Stock Exchange

Contributor article by Ann Ubelis

At 11:32am the New York Stock Exchange halted all trading reporting a computer issue.  This occurred during a week when human traders have left the trading floor and all trades are now being handled by computers.  NYSE officials have added that their computer problem is not related to today's United Airlines computer "connectivity" issue that grounded planes for two hours starting at 9:20am.  This is the second time in two months that United Airlines experienced computer issues.

At 11:51am posted on the NYSE site: "NYSE/NYSE MKT has temporarily suspended trading in all symbols. All open orders will be cancelled.  Additional information will follow as soon as possible. Customers with questions may contact the NYSE Trading Services Desk at 1-212-896-2830."

All other markets including Dow Jones Industrial (DJI) remain active.  The current market system have "circuit breakers" that trip off when trading volatility reaches a certain point to prevent massive sell offs.  At the same time, the Wall Street Journal reports computer issues that prevents subscribers access.  The Journal posted a temporary page until they can repair their computer glitches.

At this point, there has been no direct connection between the three incidents.  The computer problems fall on the heels of massive computer hacking of the Federal government, with FBI clearance files of government employees, IRS records, Obamacare records and Homeland Security, to name a few.  Hackers have originated from Wikileaks, Russia, China, India and ISIS.  This week the House Committee on Homeland Security is holding hearings.  Cyber Security is a main topic with FBI Director Comey testifying this week.

"Cyber criminals, hacktivists, and nation-states will never stop targeting Americans’ private information and American companies' and government networks to damage, disturb and steal intellectual property and U.S. Government secrets. One of the greatest cyber threats to the homeland is the weakness of our power grids, and energy and water systems. A successful cyber attack on our critical infrastructure could cripple our economy. Congress must take action to defend America’s vital digital networks and help American businesses better protect themselves." - Chairman McCaul and Subcommittee Chairman Ratcliffe  Currently before Congress is the National Cybersecurity Protection Advancement Act  (H.R. 1731)  sponsored by McCaul and Ratcliff.

As of 1pm, technicians for NYSE stated that they have no timetable as to resumption of trading nor did they state the cause of the computer issues.  They market share of trading twenty years ago would have be over 80% of the market share.  Today, with the expansion of new trading market and increased computerization, NYSE encompasses approximately 10% - 20% of market share.  Since the attack on the World Trade Center on 9/11, the NYSE computers were relocated to Jersey City, NJ, while the trading floor remains on Wall Street.  The NYSE is maintain people on the trading floor to maintain the "human element", but the iconic colorful and boisterous traders are know memories of the past and bygone era.

Department of Homeland Security has been monitoring the NYSE issue along with the SEC.  While all three issues appear to happen at the same time, and speculation is high that they are inter-related and cyber attacks, neither the FBI and DHS deny any relationship between the three events.

These issues come on the heels of China suspending all trading of government controlled companies to prevent a sell off and Greece, which recently voted down austerity measures sseks massive bailout loans to prevent total economic collapse.

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