NYSE Glitch Causes Wild Price Swings for Some of the World’s Largest Stocks (VIDEO)
The companies affected included some of the world’s largest and most well-known stocks.
Companies affected by the NYSE glitch included 3M (NYSE: MMM), AT&T (NYSE: T), Exxon Mobil (NYSE: XOM), McDonald’s (NYSE: MCD), Nike (NYSE: NKE), Visa (NYSE: V) and Walmart (NYSE: WMT), among many more.
While the NYSE has not yet announced what caused the unusual opening prices, observers believe it’s likely due to a glitch in the software that calculates the opening price. It appears that the system only received a portion of the incoming pre-market orders, causing the opening price to move drastically.
Trading on the affected stocks was halted shortly after opening, with their price manually corrected by the NYSE and trading reopening at more appropriate prices. After all the stocks were fixed, the exchange announced that their systems were up and running.
Source: CNBC Television YouTube
Shortly after, the NYSE released a statement providing some details on the mixup, stating:
New York Stock Exchange Rule 18 “establishes a process for member organizations to seek reimbursement for losses resulting from NYSE system failures.” Member organizations that suffered losses due to Tuesday’s computer glitch can petition the NYSE to recoup their losses.
Speaking to Bloomberg by phone, Ed Moya, senior market analyst at Oanda, commented:
With some stocks swinging as much as 25% in either direction to the glitch, the liability for the NYSE could be substantial. With no further word from the firm yet, we’ll have to wait and see if they provide additional details in the coming days.
Read More:
Follow Wealthy VC on Social Media: Facebook | Instagram | Twitter | LinkedIn | GETTR | Tumblr
????Join the Discussion in the Wealthy VC Investor Group
????Have a Stock Tip or New Story Suggestion? Email us at Invest@WealthyVC.com
Disclaimer: Wealthy VC does not hold a long or short position in any of the stocks mentioned in this article.