HUMAN ERROR tied to New York Stock Exchange's 'disaster recovery configuration' ... trends now
The New York Stock Exchange (NYSE) has disclosed the reason behind a dramatic drop in companies' share prices this week - revealing that the 'root cause' was a 'manual error' made by a person.
Aired by the exchange on Wednesday, the revelation comes after trading for dozens of stocks were halted Tuesday at the start of trading, following what several had assumed was a technical issue.
The complication caused 87 stocks - including those belonging to famed blue-chip firms such as Morgan Stanley, Wells Fargo, and Exxon Mobil - suddenly fall and rise at the opening bell before the problem was resolved.
The issue led to chaos in the NYSE, as traders alarmed at the sudden drops - and, in some cases, surges - questioned what could be causing the 'flash crash' that punctuated the market's open, as several typically reliable stocks fell in value.
The New York Stock Exchange (NYSE) has disclosed a reason behind a dramatic drop in companies' share prices Tuesday that sent traders into a frenzy before the issue was resolved
The complication caused 87 stocks - including those belonging to famed blue-chip firms such as Morgan Stanley suddenly plunge at the opening bell before the problem was resolved
In a statement Wednesday morning, officials at the exchange shed some light on what had happened, revealing that it was tied to the company’s 'disaster recovery configuration' prior to the market's open.
'The root cause was determined to be a manual error involving the Exchange’s Disaster Recovery configuration at system start of day,' the exchange said, referring to the complex system that assigns stocks an opening price at the 9:30am bell.
The exchange said that a manual test of this system - which uses the thousands of orders accumulated overnight and early morning to dish out share prices - on Tuesday somehow went awry.
Electing to not elaborate on the exact nature of the issue, NYSE officials insisted Wednesday that exchange systems are now 'operational,' and that 'a normal opening' for the day is expected.
In a statement Wednesday - roughly 24 hours after the unrest - the exchange dais that the 'root cause' of the incident a 'manual error' that occurred prior to the market open
Typically, when the NYSE opens at 9:30am, stocks are given an 'opening price.' To accomplish this, officials at the exchange compile sprawling lists of buy and sell orders and synthesize a single price that is provided at market open. This practice fell flat on Tuesday, officials said
As the day's close approaches, the exchange has so far proved correct in their promise - with trading, for the most part, resuming as normal.
Typically, stocks open for trading on the NYSE at 9:30am, at which point a stock is given an 'opening price.'
To accomplish this, officials at the exchange compile sprawling lists of buy and sell