By John McCrank
NEW YORK Aug 6 Stock exchange operator BATS
Global Markets said on Tuesday its largest U.S. exchange had an
outage that lasted nearly an hour due to an internal network
problem, the latest in a spate of technical problems to affect
U.S. financial markets.
BATS said it was not able to accept orders to the fully
electronic BZX exchange between 1:10 p.m. and 2:00 p.m. Eastern
time (1800 GMT). So far this month, the exchange had a 7.63
percent market share of U.S. equities trading.
A BATS spokesman later said all of the systems were back
The last major issue on the exchange occurred March 23,
2012, when a software glitch forced BATS to abandon its own
initial public offering. BATS said the issue on Tuesday was not
related to software.
Exchange operator Direct Edge also had a problem on Tuesday
that briefly forced it to stop accepting orders on its EDGX
exchange for stocks with symbols ranging from SPYV to TNC.
Direct Edge sent an alert about the issue at 3:00 p.m. ET,
saying all open orders had been cancelled. It sent another alert
eight minutes later saying its systems were operating normally
The U.S. Securities and Exchange Commission proposed a
sweeping set of rules in March that would require exchanges,
clearing agencies and other trading platforms to be better
prepared to handle major market disruptions spurred by
technology glitches and natural disasters.
The regulator made writing the rule a priority after trading
firm Knight Capital Group, which has since been bought by rival
firm Getco Holding Co and is now called KCG Holdings Inc
, nearly went bust due to a software glitch that led to
$461 million in losses.
The Knight debacle was just one incident in a string of
high-profile technology errors that plagued the markets in 2012,
from Nasdaq OMX Group's botched handling of Facebook's
initial public offering, to the aborted BATS IPO.
Then, in October, the stock market shut down for two days
during superstorm Sandy despite contingency plans, in part
because of lingering concerns about potential technical issues.
More recently, the Chicago Board Options Exchange
was unable to open for half a day in April due to a software
glitch, preventing trading in options on two of the U.S. stock
market's most closely watched indexes.