Remember those three hours when you couldn't trade any Nasdaq-listed securities? It may not have come as such a surprise to some people, although they probably wish it had now that a Wall Street Journal reporter knows their little get-togethers in the six months leading up to Aug. 22.
The red flag came on Jan. 3, when some exchanges halted trading in Nasdaq-listed stocks after a brief outage in a data feed that delivers price quotes. That incident sparked discussions at a February meeting of the committee overseeing the feed about how to manage such breakdowns….
The committee didn't take action on any of the issues that were discussed during that meeting or at subsequent ones between February and August. In the ensuing months, the group shifted discussions to data-feed capacity and proposed regulations governing exchange technology, among other issues, said people familiar with the matter….
Some conversations about handling outages continued. The January outage was regarded by some committee members as one of multiple small hiccups to hit price-data feeds over the years.
In related news, Nasdaq has gone back to fucking up the old-fashioned way.
The widely tracked Nasdaq Composite Index froze for nearly an hour Tuesday after Nasdaq OMX Group Inc. experienced problems transmitting data for stock-market indexes, the latest in a series of technical problems besetting Nasdaq.
Exchange officials blamed Tuesday's index outage on "a human error" rather than a computer glitch. Traders said the impact to the broader market was minimal, despite trading halts for some options contracts linked to the indexes.