This page has been archived and commenting is disabled.

All Trading Halted On NYSE, White House Monitoring Outage, Software "Glitch" Blamed

Tyler Durden's picture




 

*NYSE SUSPENDS TRADING IN ALL SECURITIES

* * *

The New York Times, citing floor trades, said new software to blame...

The market outage has stretched to two hours. Official say a cyber-attack is not to blame.

 

"Trader on the floor of the exchange in lower Manhattan, who spoke on the condition of anonymity, said that after the suspension began, traders were told that the problem was related to updated software that was rolled out before markets opened on Wednesday.

 

According to the trader, the exchange said that the new software caused problems soon after trading began on Wednesday and the exchange decided to shut down trading all together to fix the problem."

*  *  *

 

As Art Cashin noted - "it's been a bumpy day... with technical issues even before the open"

It started badly...

 

And CNBC was stunned...

 

Rather hilariously, CNBC just could not comprehend this "broken market"... which happens multiple times a week...

  • *NASDAQ HAS DECLARED SELF-HELP AGAINST THE NYSE AMEX
  • *NASDAQ HAS DECLARED SELF-HELP AGAINST THE NYSE
  • *NYSE EXPERIENCING `TECHNICAL ISSUE': SPOKESWOMAN
  • *NYSE: ALL OPEN ORDERS WILL BE CANCELLED

And asked "what should the retail trader at home do?"

Prophetically, we wrote about precisely this one year ago when we documented the hilarious case of "social-network" stock CYNK.  This is what we said then:

For all the drama and comedy surrounding the epic idiocy in which a bunch of "investors" took the price of non-existent company CYNK from essentially zero to a market cap of over $5 billion in under a week, most people missed the key message here: the stock is a harbinger of what is happening to the entire market. Because while those defending what is clear irrational exuberance, scratch that, irrational idiocy are quick to point out that CYNK's epic surge took place on less than 0.1% of its outstanding shares, these are the same people to say precisely the opposite about the S&P 500. "Ignore the collapsing volumes sending the stock market to all time high - it's perfectly normal" is an often repeated refrain by the permabullish crowd. Just not when it involves case studies in market insanity like CYNK apparently.

 

Perhaps ironically, it was the concurrent most recent crisis in Europe, that involving Portugal's cryptic Espirito Santo group, whose top-most HoldCo is largely shrouded in secrecy yet which somehow is not a deterrent to the sellside community to issue one after another "all is clear; don't pull your deposits please" note, that confirmed not only that nobody has any idea what the real situation of European banks is, but how the entire capital market has now become nothing more than one glorified CYNK penny-stock turning into a mid-cap.

 

Deutsche Bank's Jim Reid explains: "Whatever one feels about financials and the wider financial system, credit markets did arguably get a small glimpse of what things will be like when this cycle does actually end as the structurally impaired liquidity that exists in credit caused a small amount of panic yesterday morning before markets recovered in the European afternoon session. Liquidity is really poor in credit these days which doesn't matter when markets are in buy only mode as they have been for many quarters now, but it does matter on the days when you get a negative story."

 

In other words, just like the CEO of CYNK who promptly "made" a few billion in paper profits, it feels great to "make" money on virtually no volume. The problem arises when one tries to cash out of paper and into all too real profits.

* * *

And this happened...

*  *  *

As Reuters reports,

The White House and the U.S. Treasury Department are monitoring the "ongoing issue" at the New York Stock Exchange and President Barack Obama has been briefed on the matter, a White House official said on Wednesday.

 

The NYSE Group, which includes the New York Stock Exchange, has suspended trading in all securities because of technical difficulties.

*  *  *

Which ironic because CNBC is discussing whether this is "a success or failure" and states that "if retail investors want low cost liquid trading then they have to learn to live with this."

 

- advertisements -

Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.
Wed, 07/08/2015 - 14:04 | 6286220 thamnosma
thamnosma's picture

Internal technical issue my ass.

Wed, 07/08/2015 - 14:04 | 6286221 cheech_wizard
cheech_wizard's picture

Turn those machines back on...

Sorry had to be said.

Wed, 07/08/2015 - 14:05 | 6286230 Ray Donovan
Ray Donovan's picture

The Plunge Protection Team has arrived......

Wed, 07/08/2015 - 14:05 | 6286232 humble_man
humble_man's picture

I've officially scared myself. I've been checking SSE charts for the last week and posting premonitions....see my ZH comments....and within 48 hours they have all come true. Massive selling of US Treasuries is the only one that hasn't happened yet. Am I the reason that ZH had a 'glitch' this morning?

OF COURSE IT'S CHINA. Do your own research, and 'don't be no fool' when .GOV tells you not to worry.

Wed, 07/08/2015 - 14:07 | 6286248 crisrose
crisrose's picture

It's China.

 

http://map.norsecorp.com/

Wed, 07/08/2015 - 14:06 | 6286236 Chad_the_short_...
Chad_the_short_seller's picture

The more they come out and say, "IT'S NOT A HACK!!!" The more I believe that it is.

Wed, 07/08/2015 - 14:06 | 6286238 thunderchief
thunderchief's picture

No worries marketeers

Yellen just churtled her flabbing gizzard in the fed minutes.

They should just give her the whole Turkey suit thing.

Wed, 07/08/2015 - 14:17 | 6286252 Dathedr
Dathedr's picture

There is a 1,6 quadrillion dollaro derivatives bomb ready to blow off! And that is going to be such a show let me tell you. Never in the history of this planet bubbles' something as big as that particular bubble has formed. No wonder banksters are jumping off the sinking ship and fleeing the crime scene digging themseves in the bunkers underground! ehehehehehe

Wed, 07/08/2015 - 14:10 | 6286265 The Delicate Genius
The Delicate Genius's picture

The Dow was down 175 points (about 1%) around the time of the halt.

"Glitch"?

Nope.

Wed, 07/08/2015 - 14:11 | 6286270 silentboom
silentboom's picture

I think the NYSE has become self aware.

Wed, 07/08/2015 - 14:15 | 6286315 Nue
Nue's picture

Yes and it commited suicide rather than continuing to go on living a lie.

Wed, 07/08/2015 - 14:19 | 6286332 silentboom
silentboom's picture

Self terminated that is.

Wed, 07/08/2015 - 14:11 | 6286277 Shizzmoney
Shizzmoney's picture

Love all of the (mostly italian) Wall St tough guys on CNBC, BLOOMBERG who come on to talk about this, "This is just a nuisance.  We can still trade.  'Fiction' is not 'Fact'."

methinks they are worried

Wed, 07/08/2015 - 14:12 | 6286281 Really20
Really20's picture

Good, hopefully this is the beginning of the end of this inflated stock market system and the "nefarious" debt-based money system upon which it is based.

Wed, 07/08/2015 - 14:12 | 6286284 Nue
Nue's picture

My guess is Chinese and European investors were cashing out to cover losses in other markets. I'm betting the system has a built in off switch for when the sell orders reach a certain volume so that the people who "Guide" our "Free Market" with their great wisdom can have time to decide what to do.  Only they really don't know what to do. Welcome to the Hotel California......but you can never leave.

Wed, 07/08/2015 - 14:13 | 6286288 Spungo
Spungo's picture

"President Barack Obama has been briefed on the matter"

Do they seriously call the president every time someone unplugs something or trips over a cat5 cable? Even if this really is just a trivial issue, saying the president has been briefed is a great way to induce fear and panic.

Wed, 07/08/2015 - 14:15 | 6286314 silentboom
silentboom's picture

"White House Monitoring Outage"

 

Is it up yet?

How about now?

Any progress?

Now?

Wed, 07/08/2015 - 14:18 | 6286330 bid the soldier...
bid the soldiers shoot's picture

BOYS AND GIRLS.  PAY ATTENTION.

 

Didn't we study 'dress rehearsals' last week?

Smacker, tell everybody what a dress rehearsal is.

Wed, 07/08/2015 - 14:18 | 6286331 bid the soldier...
bid the soldiers shoot's picture

BOYS AND GIRLS.  PAY ATTENTION.

 

Didn't we study 'dress rehearsals' last week?

Smacker, tell everybody what a dress rehearsal is.

Wed, 07/08/2015 - 14:19 | 6286334 bid the soldier...
bid the soldiers shoot's picture

BOYS AND GIRLS.  PAY ATTENTION.

 

Didn't we study 'dress rehearsals' last week?

Smacker, tell everybody what a dress rehearsal is.

Wed, 07/08/2015 - 14:25 | 6286335 bid the soldier...
bid the soldiers shoot's picture

If you don't like the NYSE computers, I give you the comments program at ZH.  Let Tyler delete the superfluous comments.  I've got better things to do.

 

 

 

BOYS AND GIRLS.  PAY ATTENTION.

 

Didn't we study 'dress rehearsals' last week?

Smacker, tell everybody what a dress rehearsal is.

Wed, 07/08/2015 - 14:20 | 6286337 f16hoser
f16hoser's picture

This is/was a "Dress Rehearsal"

Temps are rising all over the world. Global Warming has nothing to do with it. Dollar has maybe 2 months to live. More to follow...

Wed, 07/08/2015 - 14:28 | 6286383 bid the soldier...
bid the soldiers shoot's picture

Where do we send flowers?

Wed, 07/08/2015 - 14:20 | 6286338 Ray Donovan
Ray Donovan's picture

I'm going to the ATM and pulling some cash out.  Not that there's much in there.....

Wed, 07/08/2015 - 14:22 | 6286350 ivana
ivana's picture

let's bet it will stay close for few days?

PS with some background selling for chosen ones

Wed, 07/08/2015 - 14:24 | 6286359 Snarf
Snarf's picture

This is a disaster for the institutions.

We're just breaking the 200dma on the SPX.   All of that MA volume is GONE.   So all of those sellers completely miss out on the expected 200dma volume that they would expect to be there.   When NYSE resumes, that volume won't be there.

This has to be insanely frustrating for institutions who were trying to distribute.

 

Wed, 07/08/2015 - 14:26 | 6286370 rubearish10
rubearish10's picture

Pre-emptive Flash Crash Initiative

Wed, 07/08/2015 - 14:27 | 6286375 Deflationist
Deflationist's picture

Indian Software upgrades are cheap.

NYSE pays the price.

Wed, 07/08/2015 - 14:27 | 6286380 MCsBusiness
MCsBusiness's picture

A "tech" problem always seems a convenient way to pull the plug when the market gets volatile... China and Greece are not imaginary, so I cannot see how this "glitch" is not related...
http://investmentwatchblog.com/china-heading-towards-1929-market-crash-p...

Wed, 07/08/2015 - 14:28 | 6286382 Hubbs
Hubbs's picture

OK, maybe just a conspiracy theory, but could it be  NYSE shut down until Central Banks and PPTs could plug the holes in view of Greece and China, and the sudden swirl of debt fiascos? Of course, have to cover up and distract from the real problem  by having seeming unrelated glitches of WSJ and United. 

I wonder if any other "distractions" have been  teed up to distract and provide cover the next time the exchanges have to be halted?

I am that skeptical/cynical.

 

Wed, 07/08/2015 - 14:30 | 6286394 Captain Chaos
Captain Chaos's picture

Europe is dying.

 

china, WSJ United NYSE are all distractions

Wed, 07/08/2015 - 14:30 | 6286395 Captain Chaos
Captain Chaos's picture

Europe is dying.

 

china, WSJ United NYSE are all distractions

Wed, 07/08/2015 - 14:32 | 6286402 bid the soldier...
bid the soldiers shoot's picture

Oh, don't worry. The market has no intention of crashing before the military junta takes over.

Wed, 07/08/2015 - 14:29 | 6286393 Captain Chaos
Captain Chaos's picture

PPT ready

NYSE reopening 2:45-3:00pm

Wed, 07/08/2015 - 14:32 | 6286407 Snarf
Snarf's picture

Wait til the NYSE reopens.   Now that SPX is sub-200dma there's a volume vaccuum.   They're going to be forced to distribute into NOTHING.

Wed, 07/08/2015 - 14:33 | 6286411 nyse
nyse's picture

"That is to say, this is the direct result of a cyber breach."

Wed, 07/08/2015 - 14:36 | 6286416 r101958
r101958's picture

Captain - Just in time for the 3pm ramp.

Wed, 07/08/2015 - 14:37 | 6286425 novictim
novictim's picture

Real Question:  When does the other shoe drop?

 

When do you folks see the HOUSING CRASH commencing?  All that Asian Money is going to be pulled back from the West Coast but how long does that take to track back into real price declines?

Wed, 07/08/2015 - 14:40 | 6286441 r101958
r101958's picture

After equities dive. Housing not as liquid.

Wed, 07/08/2015 - 14:44 | 6286466 zenblaster
zenblaster's picture

Perfect time to wear a favorite ThinkGeek.com tshirt:

"I dont often test my code, but when I do, I do it in Production."

Wed, 07/08/2015 - 15:27 | 6286688 TalkToLind
TalkToLind's picture

Call UpVote("ZenBlaster")

 

Private Function UpVote(ZHUser as String) as String

     Return("+1")

End Function

Wed, 07/08/2015 - 14:48 | 6286482 SirTaxedAlot
SirTaxedAlot's picture

Obama has been briefed. I feel mo betta now.

Wed, 07/08/2015 - 14:49 | 6286492 Beowulf55
Beowulf55's picture

Under the revised rules approved by the SEC, market-wide circuit breakers will provide for cross-market trading halts during a severe market decline as measured by a single-day decrease in the S&P 500 Index. A cross-market trading halt can be triggered at three circuit breaker thresholds—7% (Level 1), 13% (Level 2), and 20% (Level 3). These triggers are set by the markets at point levels that are calculated daily based on the prior day’s closing price of the S&P 500 Index.

A market decline that triggers a Level 1 or Level 2 circuit breaker before 3:25 p.m. will halt market-wide trading for 15 minutes, while a similar market decline “at or after” 3:25 p.m. will not halt market-wide trading. A market decline that triggers a Level 3 circuit breaker, at any time during the trading day, will halt market-wide trading for the remainder of the trading day.

source:
http://www.sec.gov/investor/alerts/circuitbreakersbulletin.htm

Wed, 07/08/2015 - 14:51 | 6286502 p00k1e
p00k1e's picture

Fidelity is still allowing log-ins.  Everything is fine.

Wed, 07/08/2015 - 14:54 | 6286517 El Hosel
El Hosel's picture

Get it up and Bang that close, the broken markets can't take much more of this... Must restore confidence.

Wed, 07/08/2015 - 14:55 | 6286509 bid the soldier...
bid the soldiers shoot's picture

The 'dress rehearsal' is over and here are the NSA's first recomendations:

 

2 more Sabrett hog dog carts at Wall and Broad and 1 more each at Broadway and Rector and Maiden Ln and William St.

 

BON APPETIT 

Wed, 07/08/2015 - 14:53 | 6286511 VladLenin
VladLenin's picture

Pres. Ass Crack is monitoring the situation... I feel so much better now.

Wed, 07/08/2015 - 14:54 | 6286522 TruthBeforeAll
TruthBeforeAll's picture

I seem to recall a warning about building your house on sand.

Wed, 07/08/2015 - 14:56 | 6286534 TheSerf
TheSerf's picture

Simple explanation:  They have been working on an upgrade to allow frontrunners far more powerful algos so they can reap billions more in churning prior to executing client orders, but they forgot about the leap second last week added to the clocks.  They have worked on the program for months, and just installed it last night, it also gave the Fed direct access to the NYSE for stock manipulation and price setting for their insider trading bankster friends.  But because these guys are blinded by money they are not very scientific about anything else.  They forgot about or never knew about the leap second.  LOL.  I am certain though that any losses from today's outage will be bailed out with your money and mine.  As always. 

Wed, 07/08/2015 - 15:01 | 6286580 CheapBastard
CheapBastard's picture

No one saw this coming

 

Wed, 07/08/2015 - 15:05 | 6286605 Sorry_about_Dresden
Sorry_about_Dresden's picture

They just halted trading so the 1% of the 1% could exit the market before the FOMC annouces the a 25 basis point increase in the discount rate.

Wed, 07/08/2015 - 15:07 | 6286615 humble_man
humble_man's picture

Using the link provided by @crisrose for Norsecorp.com, I did some checking. I'm familiar with the data centers in St. Louis and Seattle, but why so many attacks from China on Kirksville, MO? Per the DOD Federal Data Center Consolidation Initiative, there is now a DMDC (Defense Manpower Data Center) in Kirksville that contains the duty status of all US servicemembers. Personally, I'm a veteran (not active), but as a subject of the OPM data hack, all of my security clearance details are now in Chinese hands.  

My point is this: if you are on active duty and hold a TS, SCI, or higher clearance for matters concerning China, please raise you own personal security level and inform your family of this development.

Wed, 07/08/2015 - 15:07 | 6286621 LawsofPhysics
LawsofPhysics's picture

I see that the internet kill switch is working.  Don't overthink this folks.

Wed, 07/08/2015 - 15:19 | 6286669 Hubbs
Hubbs's picture

Ham Radio license Tech, General and Extra licenses: hot off the press

Elecraft KX3 High Frequency Radio, 100 watt KPA amplifier: check

Yaesu Handheld VHF and UHF Transceiver: check

Pars End Fed, Buddipole, dipole antenna: check

Winlink2000 connection and Dragon P4-7800 Modem: check

 

Call me an old fuddy duddy, but cell phone and internet shutdown can be but a click away ( at NSA whim.)

Wed, 07/08/2015 - 15:12 | 6286639 A revolution lost
A revolution lost's picture

A four plus hour outage is more than a "glitch".

Wed, 07/08/2015 - 15:14 | 6286653 TheSerf
TheSerf's picture

I have an alternative theory that the outage was not at the NYSE at all but at the Fed stock buying/fruad desk.  The Grecko-Chinese meltdown required so much stock price manipulation from the Fed that their computers did a BSOD and thus the exchange had to halt or we would be down 4000 by now. 

Wed, 07/08/2015 - 15:16 | 6286660 I Write Code
I Write Code's picture

Is the US ambassador to the NYSE still OK?

Wed, 07/08/2015 - 15:20 | 6286672 yogibear
yogibear's picture

Sell-side orders closed until market calmed down.

Can't have massive selling. Have to close market and blame it on a glitch.

 

Wed, 07/08/2015 - 15:53 | 6286878 felix2
felix2's picture

12-20-12 ICE buys NYSE http://www.cnbc.com/id/100330589

ICE: https://en.wikipedia.org/wiki/Intercontinental_Exchange

In May 2000, ICE was founded by Sprecher and backed by Goldman Sachs, Morgan Stanley, BP, Total, Shell, Deutsche Bank and Societe Generale [5][6] who represent some of the world's largest energy traders....

 

In a response to US financial crisis in 2008, Sprecher formed ICE US Trust based in New York, now called ICE Clear Credit LLC, to serve as a limited-purpose bank, a clearing house for credit default swaps. (Weitzman 2008)"...

 

The principal backers for ICE US Trust were the same financial institutions most affected by the crisis, the top ten of the world's largest banks (Goldman Sachs, Bank of America, Citi, Credit Suisse, Deutsche Bank, JPMorgan, Merrill Lynch, Morgan Stanley and UBS). Sprecher's clearing house cleared their global credit default swaps (CDS) in exchange for sharing profits with these banks.(Weitzman 2008)(Terhune 2010)....

 

ICE Futures Europe is the leading market for carbon dioxide (CO2) emissions.

...

http://www.thestreet.com/story/13212297/1/intercontinentalexchange-group...

07/08/15 - 03:05 PM EDT

(ICE) Showing Signs Of Being A Roof Leaker

LOL

 

Wed, 07/08/2015 - 15:54 | 6286880 felix2
felix2's picture

12-20-12 ICE buys NYSE http://www.cnbc.com/id/100330589

ICE: https://en.wikipedia.org/wiki/Intercontinental_Exchange

In May 2000, ICE was founded by Sprecher and backed by Goldman Sachs, Morgan Stanley, BP, Total, Shell, Deutsche Bank and Societe Generale [5][6] who represent some of the world's largest energy traders....

 

In a response to US financial crisis in 2008, Sprecher formed ICE US Trust based in New York, now called ICE Clear Credit LLC, to serve as a limited-purpose bank, a clearing house for credit default swaps. (Weitzman 2008)"...

 

The principal backers for ICE US Trust were the same financial institutions most affected by the crisis, the top ten of the world's largest banks (Goldman Sachs, Bank of America, Citi, Credit Suisse, Deutsche Bank, JPMorgan, Merrill Lynch, Morgan Stanley and UBS). Sprecher's clearing house cleared their global credit default swaps (CDS) in exchange for sharing profits with these banks.(Weitzman 2008)(Terhune 2010)....

 

ICE Futures Europe is the leading market for carbon dioxide (CO2) emissions.

...

http://www.thestreet.com/story/13212297/1/intercontinentalexchange-group...

07/08/15 - 03:05 PM EDT

(ICE) Showing Signs Of Being A Roof Leaker

LOL

 

Wed, 07/08/2015 - 15:55 | 6286886 felix2
felix2's picture

Sorry I posted 2X. I got locked out of ZH when I tried to post.

Wed, 07/08/2015 - 15:58 | 6286904 Tegrat
Tegrat's picture

Last week I told my wife to move everything to UST from SPX. She thinks I am a financial genious. I wanted to get ahead of start of Jade Helm.

Wed, 07/08/2015 - 16:03 | 6286930 Pseudonymous
Pseudonymous's picture

 

Let's play a game...

It's called who owns what???

-- Someone on /r/Bitcoin commenting on this news.

Wed, 07/08/2015 - 20:26 | 6287997 theyjustcantstop
theyjustcantstop's picture

I talked to my friend today, one whom I've been tying to explain, assets In the system, and out of the system, taught him some inflation, delation also, early am at nyse it was 1970's inflation assets, "stocks", mid morning nyse, it was 1929 deflation, no cash out of system.

 

Do NOT follow this link or you will be banned from the site!