(Bloomberg) -- More than 700 miles from Wall Street, the New York Stock Exchange's backup data center on Cermak Road in Chicago is supposed to safeguard US markets, standing by at all hours in case disaster ever strikes the world's largest venue for trading shares.
Most Read from Bloomberg
Hindenburg's Short Sell Call Shaves $12 Billion Off Adani Stocks
US Confronts China Over Companies' Ties to Russia War Effort
Tech-Led Slide Fades; Tesla Whipsaws on Earnings: Markets Wrap
Josh Kushner Is Richer Than Trump After Billionaires Back His Firm
US and Germany Set to Send Tanks to Ukraine, Breaking Deadlock
When markets are closed, it participates in a well-worn routine, with NYSE staffers turning on and off systems to ensure everything works. But heading into Tuesday, an NYSE employee failed to properly shut down Cermak's disaster-recovery system - leading to a disaster.
That human error, described by people with direct knowledge of NYSE's internal operations, is what triggered wild market swings when trading opened Tuesday morning in Manhattan. The chaos affected more than 250 companies including Wells Fargo & Co., McDonald's Corp., Walmart Inc. and Morgan Stanley, in some cases sending stock prices swinging by 25 percentage points in a matter of minutes.
The episode has prompted the exchange to cancel thousands of trades at a cost that's still being determined. Meanwhile, market professionals and day traders are rattled and waiting for the exchange to elaborate on what it publicly called a "manual error" involving its "disaster recovery configuration."
"They're going to need to come up with something better" to assuage investors and regulators, said Joseph Saluzzi, a partner and co-founder of Themis Trading LLC, whose firm avoided losses. "Though systems fail, and we understand that, there's zero tolerance when it comes to the opening and the close."
Read more: Schwab criticizes NYSE over system failure that roiled trading
In plainer English, according to one of the people, the turmoil resulted because the backup system in Cermak was left running. That misled the exchange's computers to treat the 9:30 a.m. opening bell as a continuation of trading, and so they skipped the day's opening auctions that neatly set initial prices.
Without that routine step, orders flowed through at prices all over the place. That soon tripped circuit breakers designed to prevent violent market swings, setting off alarms on screens across the investing world.
NYSE executives spent hours pinpointing the problem until they were confident there wouldn't be further fallout, said the people, who spoke on the condition they not be identified discussing the internal matter. Officials also began reviewing whether the dislocated trades could be labeled "clearly erroneous" under the market's rules and then canceled. Shortly before 3 p.m. Tuesday, the exchange announced that it would unwind the most egregious transactions.
NYSE has yet to determine how much the debacle may cost. It's already fielding claims from firms under the exchange's rules, the people said. Those affected have until Friday, three days after the event, to describe any damages.
The venue gathers about $500,000 per month for a fund to compensate exchange members - mostly broker dealers representing their investor clients - when such mishaps occur. Decisions on claims for Tuesday's episode will be made by the end of the month.
Behind closed doors, NYSE executives are grappling not just with the potential cost, but the impact on the exchange's reputation. They're in contact with regulators and lawmakers to explain what happened. And they plan to examine the platform's procedures and management, potentially reworking rules to be more flexible and provide further protections.
Charles Schwab Corp., the brokerage catering to retail investors, openly criticized the NYSE on Wednesday, saying it's disappointed by how the incident was handled and that individuals may not get a fair shake when it comes to compensation. Schwab said the episode should also raise concerns about regulatory proposals that could push more trading onto stock exchanges.
"Unfortunately, the NYSE has not owned up to their full responsibility and retail investors will have to go through a lengthy process to correct orders, with no guarantee of a reasonable outcome," Schwab spokesperson Mayura Hooper said. "It further heightens our concerns that routing even greater levels of retail orders to the exchanges will dramatically reduce the quality of the investing experience for America's retail investors."
Read more: NYSE says certain trades to be canceled after glitch at open
--With assistance from Matt Turner.
Most Read from Bloomberg Businessweek
How to Be 18 Years Old Again for Only $2 Million a Year
Wind Turbines Taller Than the Statue of Liberty Are Falling Over
Elon Musk's Epic Quest for LOLs Is Only Hurting Tesla
Is Europe Sleepwalking Into Another War?
Is a US Recession Near? Making the Call Is Trickier Than Ever
©2023 Bloomberg L.P.
I keep looking for stories on the web that will help me. There is certainly a lot to understand about this. To anyone else I think you have additionally put some beneficial focus on attributes. The job is full, amazing job! 먹튀검증REPLY
android haberleri(2023-01-26 09:50:40Z)
Good post! We will be linking to this particularly great post on our site. Keep up the great writingREPLY
Black Owned Lawyer(2023-01-26 12:15:38Z)
i love to also get some beach body but it requires a lot of diet modification and exercise,.REPLY
Thanks a lot. I like this.
https://essaywritingserviceahrefs.com/ business writing services company
digoxin 250 mg generic lanoxin without prescription molnunat 200 mg for saleREPLY
Nicely put, Thanks.
buy essay online safe college essays for sale pay for college essays
Regards, A lot of content!
help with my dissertation proposal phd dissertation help review dissertation writing services
You've made your point!
help me write my essay helping people essay writing help
order amoxicillin generic order stromectol 6mg for sale ivermectin brand nameREPLY
Regards, I like it!
do my homework pay you can be my teacher i ll do homework do my acees homework
coreg pills buy oxybutynin 5mg online buy elavil 50mg saleREPLY
order dapoxetine 30mg pill buy dapoxetine 30mg online buy motilium 10mg without prescriptionREPLY
alendronate 70mg without prescription nitrofurantoin sale ibuprofen caREPLY
This is nicely expressed! !
writing an essay introduction credible essay writing services cover letter writing service reviews
brand indomethacin 50mg cost flomax 0.2mg oral cenforce 100mgREPLY
order pamelor 25 mg purchase panadol online cheap order paxil genericREPLY
Nicely put, Thanks a lot.
i forgot to do my essay writing an argumentative essay about an ethical issue how do i improve my essay writing skills
order doxycycline 100mg order chloroquine sale medrol 4mg without a doctor prescriptionREPLY
cheap pepcid 40mg remeron 15mg us remeron 30mg without prescriptionREPLY
You actually stated it effectively.REPLY
academic thesis statement creating a thesis good thesis statement relationship between service quality and customer satisfaction thesis
buy a paper for college paper writing services online custom written papers free research paper writing service
steps to write an argumentative essay https://argumentativethesis.com
Reliable advice. Kudos.
writing essays service best essay writing service yahoo term paper writing service professional coursework writing service
Fantastic tips. Thanks a lot!
buy essay cheap buy essays online cheap pay for someone to do your essay buy your essays
writing papers pay to do my paper best research paper writer write my psychology paper
essay writer service https://writingthesistops.com
You said it perfectly..
master paper writers review pay to do paper pay to write a paper pay someone to write my paper
custom paper writing service reviews what is the best paper writing service writing services for college papers best college paper writing service
phd dissertation writing services https://researchproposalforphd.com
ropinirole 1mg us order rocaltrol generic trandate 100mg usaREPLY
tadalafil 10mg oral amoxicillin 250mg drug order amoxicillinREPLY
With thanks. I value it!
hire research paper writers can you write my paper find someone to write my paper essay writer
write essay for money write a book report for me write my essay free online write your essay
affordable essay writing service https://essaywritingservicehelp.com
Whoa many of excellent knowledge!
buy original essays buy custom essays buy essays pay for essay writing
You revealed that adequately.REPLY
pay for college papers order cheap essay college paper for sale pay to do essay
help me write my college essay help writing college admission essay help with essay writing websites to help write essays
how to write a comparison contrast essay https://bestmasterthesiswritingservice.com
Appreciate it. Numerous facts.
unique essay writing service essay writing service australia student essay writing best will writing service
buying college essays argumentative essays for sale pay to get essay written why money can t buy happiness essay
fast custom essays https://essaywritingserviceahrefs.com
Appreciate it. Numerous postings!
us based paper writing service prestigious medical paper writing service paper writing service reddit college paper writing service china chinese healthcare health care
order tricor 200mg online buy tricor sale female viagra sildenafilREPLY
buy nexium 40mg generic biaxin 500mg usa lasix cheapREPLY
You actually revealed that well.REPLY
best linkedin profile writing service essay writing service college linkedin writing service uk best resume writing service for veterans
You revealed that very well!REPLY
buy essay online writing service high school research paper writing service writing essays online upstate resume & writing service
write my paper for me write my paper one day professional essay writers write my paper reviews
college board essays https://payforanessaysonline.com
Factor clearly regarded!!
write my papers for me do my research paper for me need someone to write my research paper will someone write my paper for me
can someone write a song for me auto essay writer free write my college essay for me expert essay writers
review of essay writing services https://topswritingservices.com
You stated this superbly!REPLY
dissertation editing www dissertation help co uk best dissertation writing service review hire a dissertation writer
This is nicely put. .
writing my essay thank you for teaching me how to read and write can someone write my essay who can write my essay
website that writes essays for you write a secret anonymous message for me write my thesis for me write my essay for me online
best cv writing services https://paperwritingservicecheap.com
Many thanks! Valuable information!
personal letter writing service uk best military to civilian resume writing service university essay writing service uk top uk essay writing services
best online resume writing service essay writing service malaysia should i hire a resume writing service essay writting
community service essay https://writingresearchtermpaperservice.com
cialis generic name Free cialis female viagra sildenafilREPLY
minocycline tablet gabapentin 600mg price cheap hytrin 5mgREPLY
Beneficial knowledge. Kudos.
college application essay writing service college essay writing service in usa content writing service in bangladesh 6th grade essay writing worksheets
Amazing loads of amazing tips.
make an essay for me can i pay someone to write my paper for me what should i write my college essay about website writes essays for you
write my term paper for me proposal overview buy a term paper buy research papers online cheap
freedom writers review essay https://helpwithdissertationwriting.com
buy cialis 20mg online male erection pills ed pills comparisonREPLY
You have made your point.
essay writer free trial write my assignment for me uk how do i put a book title in my essay essay writer com
the shocking truth about essay writing services paper writing service in us writing essay service will writing service weston super mare
writing an admissions essay https://bestonlinepaperwritingservices.com
Fine data. With thanks.
write my research paper for me for free custom written research paper where can i buy research papers online phd.proposal
Very well voiced really. !
university essay writing service best essay writing service yahoo pro essay writing service writing a narrative essay about being judged
write in cursive for me write a book report for me write my essays for me write my essay for me reviews
service essay writing https://essayservicehelp.com
glycomet online buy buy nolvadex generic buy nolvadex 20mg pillREPLY
Thank you. Plenty of info!
do my paper for me research papers writers write paper for me reviews write paper for me review
Wow a good deal of beneficial data!
help essay help writing a narrative essay essay writing service uk medical school application essay help
Truly tons of helpful info!
essay paper writer how to write a descriptive essay about my school what website writes essays for you write my admission essay
Fantastic info, Kudos!
professional research paper writing services research paper writing service australia online paper writing services online paper writing service
paying people to write papers business paper writing service reddit paper writing service review paying someone to write a paper for you
web content writing services https://service-essay.com
Nicely put, Thank you.
best thesis ap lit thesis argumentative essay thesis objective thesis statement
top college essays https://writeadissertation.com
Amazing postings. Regards!
research essay writing service essay service review richardson writing service college essay writing tips
provigil 100mg us order phenergan online purchase phenerganREPLY
clomiphene 100mg cost prednisolone without prescription prednisolone canadaREPLY
order deltasone 5mg generic deltasone 5mg canada amoxil 500mg pillREPLY
cost isotretinoin 10mg isotretinoin 40mg usa ampicillin onlineREPLY
generic sildenafil 100mg order sildenafil 100mg pill order proscar pillsREPLY
where can i buy ivermectin stromectol 12mg ca order deltasone 40mg without prescriptionREPLY
oral zofran bactrim 480mg price buy trimethoprim onlineREPLY
order isotretinoin 40mg buy zithromax 500mg online zithromax 500mg costREPLY
buy albuterol generic augmentin for sale online augmentin 625mg oralREPLY
Nicely put, Regards.
write a research proposal term papers for sale buy term papers proposal essay
Reliable posts. Thanks!
essay writer free write my paper who will write my paper for me my paper writer
Tips nicely applied.!
purpose of a proposal term paper writers wanted custom made term papers essay proposals
term paper writer pay to do paper essay writers online writer paper
narrative writing essay https://essaywriting4you.com
prednisolone 5mg price furosemide over the counter lasix medicationREPLY
Fantastic posts. Appreciate it!
essay writing service american writers free will writing service charity writing a scholarship essay professional cv writing service london
Great material, Regards.
best place to buy essays buy essay online reviews pay someone to do my essay buy your essay
help me do my homework please how to do my math homework where can i do my math homework online should i do my homework right now
college essay introduction https://cheapessaywriteronlineservices.com
Amazing information, With thanks.
helping others essays descriptive essay help help for writing essays essay helping others
buy modafinil 100mg without prescription buy zestril 10mg sale buy metoprolol 50mg online cheapREPLY
You made your point pretty nicely!!
online essay writer professional college paper writers term paper writers pay someone to do my paper
buy college essay buy an essay uk buy essay online reviews buy essays uk
psychology essay writing https://essaytyperhelp.com
oral doxycycline 100mg cost vardenafil 10mg acyclovir orderREPLY
Cheers! A lot of information.
masters essay writing service non profit resume writing service essay writing service cheap expository essay writing service
best online essay writing service essay service reviews biology essay writing service nursing essay writing service uk
best article writing services https://researchproposalforphd.com
buy dutasteride pill cheap xenical 120mg order orlistat for saleREPLY
Thanks a lot, Useful information!
example thesis thesis formatting service malaysia thesis on customer service delivery perfect thesis
Thanks a lot. I value it.
will writing service gravesend master thesis writing service essay writing service uk forum how to teach essay writing
thesis proposal writing service write my thesis paper thesis for literary analysis background of thesis
website that writes essays https://bestmasterthesiswritingservice.com
Wow lots of valuable tips.
can someone do my spanish homework my teenage son won t do his homework do my finance homework for me do my homework for me reddit
azathioprine pill buy azathioprine 25mg for sale purchase naproxen onlineREPLY
Tips nicely regarded!.
essay write help history essay helper college essay writing help essay help edu
are dissertation writing services legal hire a dissertation writer dissertation introduction buy masters dissertation
essay help live chat https://essaywritingservicebbc.com
Cheers! Good information.
doing my best to do good essay write in cursive for me make my essaywrite my essay essays for me
oxybutynin 5mg brand purchase trileptal sale buy oxcarbazepine onlineREPLY
Useful tips. Many thanks.
best resume writing service reddit bespoke essay writing services affordable essay writing service international cv writing service
paper writing help essay typer helping others essays essay helper app
assignment writing services https://service-essay.com
This is nicely expressed! .
dissertation writers proposal writing service phd subject help writing dissertation proposal
cefdinir uk order protonix 20mg pills cheap protonixREPLY
With thanks, Great stuff.
research paper writing service cheap best paper writing services reviews masters paper writing service good paper writing service
essay writing service reviews best service medical thesis writing service india have you ever used an essay writing service dissertation writing service in us
custom written https://theessayswriters.com
Amazing a good deal of fantastic advice.
buy already written essays online order essay paper pay for essay writing best place to buy essay
simvastatin order online buy sildalis sildalis orderREPLY
Thanks, Wonderful information.
online essays for sale pay someone to do your essay pay for essay paper buy essays online safe
coursework writers coursework website i can t do my homework my classmates used me to do their homework
ghost writing service https://theessayswriters.com
Incredible lots of excellent information!
dissertation abstract umi dissertation services ann arbor michigan phd thesis writing services india phd service
order avlosulfon 100mg without prescription buy mesalamine 400mg pills tenormin usREPLY
You explained that wonderfully!REPLY
writing dissertation service accounting dissertation help dissertations help dissertation conclusion help
writing a dissertation uk dissertation writers dissertation online best dissertation writing services reviews
essay writing classes https://essaywritingservicehelp.com