Our technology has become so advanced that markets are never hit by glitches, right?
Not at all. The Nasdaq data mishap Tuesday is only the latest high-profile malfunction to rattle investors.
The Nasdaq stock exchange NDAQ, +0.22% said that happened because test data were apparently mistakenly disseminated by third-party providers to those financial websites.
Many investors seemed alarmed by the unusual moves. But no actual trades were affected by the corrupted ticker data, according to Nasdaq.
In any case, trades often are canceled after these problems, as was the case last year following a technical stutter for a NYSE ETF trading venue.
And there have been a fair few crashes and other malfunctions, as the list of recent glitches below shows. Note that it’s not a complete tally, just some highlights:
• December 2016: The largest U.S. trading venue for ETFs — NYSE Arca — suffered a technical glitch that forced a 15-minute trading halt for the platform.
• August 2015: Some of Wall Street’s biggest exchange-traded funds fell hard and then bounced back, as analysts blamed algorithmic trading for this flash crash for ETFs.
• August 2013: A “flash freeze” hit the Nasdaq, leading to a three-hour trading shutdown.
• May 2010: A dramatic flash crash spooked traders, as the Dow industrialsDJIA, +0.61% dived by almost 1,000 points before quickly recovering. The plunge led to much debate, new regulations and even convictions for use of a bluffing tactic called “spoofing.”