Funds News

Dow Jones Indexes sees glitch-free Dow calculation

NEW YORK, Feb 28 (Reuters) - Dow Jones Indexes expects the calculation of the Dow Jones industrial average to be glitch-free on Wednesday, the index provider said, a day after a computer system malfunction contributed to an abrupt slide in the blue-chip index as U.S. stocks sold off.

“Dow Jones is continuing to investigate the (system) latency issue to correct the root cause of the problem,” Michael Petronella, president of Dow Jones Indexes, said in a statement.

With an hour left to trade, the Dow Jones industrial average fell more than 500 points as it abruptly added about 200 points to its slide in late afternoon trade on Tuesday.

According to Dow Jones Indexes, “unusually heavy volume” caused a 70-minute lag in correctly calculating the value of the Dow and the subsequent downward spike in the reported index value when the problem was corrected at 3 p.m. (2000 GMT)

The problem arose in the system responsible for feeding market data into the calculation system, the index provider said.

At no point did the swing in the Dow average affect stock prices, a Dow Jones Indexes spokeswoman said on Tuesday.

Dow Jones Indexes is part of Dow Jones & Co. DJ.N.