URGENT: NASDAQ issues trading halt

Problem occurs on heels of earlier Goldman Sachs trading mess. Photo: AP

WASHINGTON, August 22, 2012 – We’ve just received the following notice from our brokerage: “Due to a street-wide issue at NSDQ, some equities and options trading is currently halted. Trading will resume on NASDAQ equities and options as soon as the issue has been resolved.”

According to an AP wire report, “[NASDAQ] sent out an alert to traders at 12:20 p.m. EDT saying that trading was being halted until further notice because of problems with a quote dissemination system.” Trading was exchange-wide, going beyond the issues of those securities involved.

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The exchange added that it would not be canceling open orders on its book after the current glitch is resolved, unlike the ongoing mess caused by Goldman Sachs earlier this week when a portion of its system executed erroneous trades. Goldman and wire houses continue to sort that issue out with most of those trades reportedly likely to be canceled.

In a statement to brokerages and investors, NASDAQ currently noted the following:

“Customers who wish to cancel their orders may do so and any customer who wishes to not participate in the re-opening should cancel their orders prior to the resumption of trading. Additionally, Nasdaq will clear all stale quotes from the UTP SIP prior to the commencement of trading.”

The NYSE is reportedly also halting trading in those NASDAQ issues involved in the glitch.

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Our advice to retail traders: be very careful when NASDAQ reopens for trading and avoid market orders. The reboot, if and when it occurs today, is likely to be volatile, so stay out of the way until things settle down.

We’ll update this report as we’re able to confirm additional information.

UPDATE: As of 1:25 EDT, the NASDAQ has indicated it hopes to reopen trading “soon.” 

Disclaimer: The author of this column maintains several active trading and investment portfolios and owns residential and investment real estate.

Positions mentioned above describe this author’s own investment decisions and should not be construed as either buy or sell recommendations. The current market is highly treacherous and all investors travel at their own risk, so caution should be exercised at all times.

Illustrations, charts, commentary, and analysis are only the author’s view of current or historical market activity and don’t constitute a recommendation to buy or sell any security or contract. Views, indications, and analysis aren’t necessarily predictive of any future market or government action. Rather they indicate the author’s opinion as to a range of possibilities that may occur going forward.

References to other reporters, analysts, pundits, or commentators are illustrative only and do not necessarily represent an endorsement of such individuals’ points of view. If specific investment vehicles are mentioned in any article under this column heading, the author will always fully disclose any active or contemplated investments in said vehicles.

Read more of Terry’s news and reviews at Curtain Up! in the Entertain Us neighborhood of the Washington Times Communities. For Terry’s investing and political insights, visit his Communities columns, The Prudent Man and Morning Market Maven, in Business.

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Terry Ponick

Now writing on investing, politics, music, movies and theater for the Washington Times Communities, Terry was formerly the longtime music and culture critic for the Washington Times print edition (1994-2009) before moving online with Communities in 2010.  



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