New York — NYSE Group sowed confusion among traders after a technical error hobbled one of its exchanges on Monday. NYSE Arca, the largest US listing venue for exchange-traded funds, shifted to back-up methods for calculating the closing prices for most securities, according to a series of trader alerts. The exchange closed early for its after-hours session, saying it would not resume trading until 4am (10am SA time) on Tuesday. Kristen Kaus, a spokeswoman for NYSE, declined to comment beyond the trader alerts. While high-profile exchange malfunctions are becoming rarer in the $27-trillion US stock market, Monday’s fault highlights the importance of closing auctions, which have assumed a bigger role with the growth of passive investing. Out of 1,230 Arca-listed securities, only 53 were closed through the normal auction-drive method. Those that were not include the $237bn SPDR S&P 500 ETF and $33bn SPDR Gold Shares ETF, two of the world’s largest exchange-traded funds. "One could arg...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.