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Reuters 3000, One Of Two Key Global FX Trading Platforms, Is Offline

Tyler Durden's picture




 

In the aftermath of its recent epic hacking, Reuters decided to take down its in house blogs. Few people noticed, and from what we hear they are still down. However, when Reuters' 3000 - the firm's FX trading platform: "one of the two key systems used by currency traders around the world, experienced an outage Tuesday, according to several market participants" goes down, and has yet to come up, we can only hope that someone has paid attention unless FX trading is also now thoroughly dominated by algos as well) to a market which transacts to the tune of several trillions in notional every day. But perhaps most interesting is that the "break" occurred at precisely 3:13 pm, at just the moment when the accelerating selloff in the EURUSD, and thus the broad market, could have caused quite a headache for those whose reelection chances are dependent on the S&P being as high as possible heading into November.

From Dow Jones:

Thomson Reuters Corp.'s electronic trading platform, one of the two key systems used by currency traders around the world, experienced an outage Tuesday, according to several market participants.

 

The trading system, named Reuters 3000, went out at 3:13 p.m. EDT (1913 GMT), said Michael Lavina, head of trading at Faros Trading, and has hadn't come back online as of 4:08 p.m EDT.

 

A representative for Thomson Reuters wasn't immediately available for comment.

 

During the outage, traders at Bank of New York Mellon Corp. said they were routing their trades through EBS, the other major currency platform.

 

In the most recent data available, the electronic currencies-dealing system run by Thomson Reuters consolidated its lead ahead over main rival EBS in July, with its average daily volume outstripping those of its main rival for the 10th straight month.

 

In July, Thomson Reuters said it had handled an average of $130 billion of trading volumes per day, a 10% fall from June and a 14% drop from the same time last year. But flows were still higher than those on EBS, which saw an average of $106.7 billion per day in the same month--22% below the previous month and some 41% lower on the year.

Now bear with us here - Reuters 3000 went offline at 3:13 pm Eastern. Spot at precisely what point the EURUSD, which as everyone knows, is the main driver for ES, for broad risk, and for the market in general, reverses its downward trend and starts creeping higher as if controlled by your run of the mill Knight Capital algos...

Going forward, do assorted markets literally have to break every single time broad risk needs a helping invisible hand higher?

 

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Tue, 08/21/2012 - 17:21 | 2725354 reader2010
reader2010's picture

Super Bullish!

Tue, 08/21/2012 - 17:22 | 2725359 veyron
veyron's picture

new muppets about to be corzined

Tue, 08/21/2012 - 17:27 | 2725380 NotApplicable
NotApplicable's picture

So... how many FX traders will get margined out of their positions with no recourse?

Tue, 08/21/2012 - 17:39 | 2725411 malikai
malikai's picture

Reuter's system isn't for Retail, it's for Brokers/Market Makers.

What I don't get is how a wordpress hacking can make them have to take down the FX platform. Sounds a bit strange to me. They are completely unrelated systems, unless Reuters' people are so stupid as to put passwords and the like on their internal blogs.

Tue, 08/21/2012 - 19:40 | 2725674 Tippoo Sultan
Tippoo Sultan's picture

"Reuters 3000 invisible hand ? Don't blame me."

- Adam Smith

Tue, 08/21/2012 - 17:42 | 2725419 AldousHuxley
AldousHuxley's picture

need to patch the system for Libor Fix 2.0

 

 

Tue, 08/21/2012 - 20:13 | 2725777 Silver Bug
Silver Bug's picture

The robots just needed a nap.

 

http://ericsprott.blogspot.ca/

Tue, 08/21/2012 - 17:24 | 2725369 fonzannoon
fonzannoon's picture

Reuters 3000. Just sounds like the bad robot in the bad robot movies.

Tue, 08/21/2012 - 17:29 | 2725385 ghengis86
ghengis86's picture

Mystery Muppet-Slaying Theater 3000?

Tue, 08/21/2012 - 17:38 | 2725409 AldousHuxley
AldousHuxley's picture

sounds like new batch of whey powder from GNC.....

 

 

Tue, 08/21/2012 - 18:14 | 2725498 economicfreefall
economicfreefall's picture

...sent back in time to kill the free market. I'm sure it broke down out of confusion when it realized the job was already done.

http://www.MiningStockValuator.com -portfolio tracker & analysis of gold and silver stocks

Tue, 08/21/2012 - 18:54 | 2725580 onelight
onelight's picture

Mystery Forex Theatre, at any rate..

Tue, 08/21/2012 - 18:31 | 2725533 Disenchanted
Disenchanted's picture

 

 

Why don't they just plug in Hal 9000?

 

"Open the print bay doors Hal."

Tue, 08/21/2012 - 17:24 | 2725370 ghengis86
ghengis86's picture

Isn't there a liborgate connection to Reuters?  Regardless, this will be blamed on computers, who just happen to act on their own with no human instruction.  Or maybe a faulty router or two...

Tue, 08/21/2012 - 17:30 | 2725387 NotApplicable
NotApplicable's picture

AFAIK, they've yet to use the ole "passing neutrino flipped a bit" excuse (one of my personal favorites).

Tue, 08/21/2012 - 17:31 | 2725392 Major Major Major
Major Major Major's picture

Well, this is one of the recent connections... http://www.zerohedge.com/news/mr-libor-leaves-british-banker-association-goes-reuters

Seems to be on track

Tue, 08/21/2012 - 18:56 | 2725584 onelight
onelight's picture

UK banks have been knee-capped with the timing choice for the Libor scandal -- guess they had better behave and not drive wider the EU sov bond spreads -- not before the US elections anyway...

Tue, 08/21/2012 - 17:48 | 2725432 salvadordaly
salvadordaly's picture

One little thing I learned early about computers, "It only does what you tell it to do!" It actually waits for your input. Odd isn't it?

Tue, 08/21/2012 - 17:27 | 2725381 q99x2
q99x2's picture

What will Peter say to Paul?

Tue, 08/21/2012 - 17:49 | 2725436 Nadaclue
Nadaclue's picture

Mary's preggers and it ain't mine as I'm shootin blanks?

Tue, 08/21/2012 - 17:30 | 2725389 max2205
max2205's picture

Smells like Knight

Tue, 08/21/2012 - 17:32 | 2725393 booboo
booboo's picture

Reuters 3000 is an updated version of Farmville.

Tue, 08/21/2012 - 17:36 | 2725406 Rainman
Rainman's picture

I'll vote for a conspiracy. Some EBS agent obviously got inside machine 3000.

Tue, 08/21/2012 - 17:55 | 2725453 XitSam
XitSam's picture

Just another component test for when "they" take the system down for real.

Tue, 08/21/2012 - 17:39 | 2725413 debtor of last ...
debtor of last resort's picture

Thou shall not trade, thou should consume.

Tue, 08/21/2012 - 17:50 | 2725440 Legolas
Legolas's picture

Wow.  Thanks for the timely info, TD !  Anyone else reporting this?  I couldn't find it on Yahoo Finance ( <sarc> that bastion of independent financial journalism </sarc>).  Three cheers for ZeroHedge. 

 

Tue, 08/21/2012 - 17:51 | 2725442 cassotto
cassotto's picture

wow 13 pips

Tue, 08/21/2012 - 17:55 | 2725455 Tyler Durden
Tyler Durden's picture

Luckily there is no such thing as leverage (or momentum) in FX

Tue, 08/21/2012 - 18:17 | 2725511 cassotto
cassotto's picture

it's still well within the downward channel, let's see where it goes from here

Tue, 08/21/2012 - 23:30 | 2726251 mademesmile
mademesmile's picture

Oops, I misread you "it's still wet within the downward channel, let's see where it goes from here" and it didn't make sense. And then it did.

Tue, 08/21/2012 - 17:52 | 2725445 cougar_w
cougar_w's picture

Who needs foreign exchanges anyway? Damned French.

Tue, 08/21/2012 - 17:56 | 2725456 Never One Roach
Never One Roach's picture

Rumor has it Corzine will be the next Treasury Secretary after Timmy steps down.

T or F ?

Tue, 08/21/2012 - 18:04 | 2725476 Nadaclue
Nadaclue's picture

That would not be surprising since the Senate adbicated their (duty) right to confirm Cabinet Positions.

Tue, 08/21/2012 - 18:17 | 2725510 pragmatic hobo
pragmatic hobo's picture

yeah? rumour has it that eric holder will be running the justice department. Top that.

Tue, 08/21/2012 - 18:00 | 2725466 Poor Grogman
Poor Grogman's picture

I wonder what this button does???

Tue, 08/21/2012 - 18:07 | 2725485 greensnacks
greensnacks's picture

Trading platforms make money from trades, not by damaging their reputation with outages to help invisible hands.

Tue, 08/21/2012 - 18:13 | 2725494 Pretorian
Pretorian's picture

WTF? 1 % strike again. The free market theory is just theory.

 

Tue, 08/21/2012 - 18:22 | 2725506 Pretorian
Pretorian's picture

After LIBOR manipulation it is FX spot next  in line to fire up Crime Syndicate or FED bitches. Just follow the money, the largest turnover is in FX Spot .  If China or Russia Central Banks have bitches like FED does(JP Morgan, BofA,Goldy....) who are rigging the market for FED than US would declare war.

Tue, 08/21/2012 - 18:19 | 2725515 vote_libertaria...
vote_libertarian_party's picture

That is creepy that the bounce occured at the same time.

Tue, 08/21/2012 - 18:22 | 2725518 Mr Lennon Hendrix
Mr Lennon Hendrix's picture

The selloff will continue tomorrow.  Bernanke is getting married to his printer on Aug 31st and he wants gold under 1700, silver under 30, and US equity to be not too high or else his bride will not be able to perform on their honeymoon.

Tue, 08/21/2012 - 18:24 | 2725525 Diablo
Diablo's picture

practically no one of any relevance uses D3000 to trade eur/usd. that ccy pair is almost entirely traded on EBS.

 

Tue, 08/21/2012 - 18:31 | 2725537 MachuPicchu
MachuPicchu's picture

FX muppets algos!!!

Tue, 08/21/2012 - 18:51 | 2725575 chump666
chump666's picture

small coincidences...

 

Tue, 08/21/2012 - 18:52 | 2725578 hugovanderbubble
hugovanderbubble's picture

Look GBPUSD inverted hammer in hourly

Tue, 08/21/2012 - 18:56 | 2725586 disabledvet
disabledvet's picture

Perhaps if Reuters got the 3000 to the point where it asked to play a game of Chess instead of "Global Financial Armageddon"...

Tue, 08/21/2012 - 19:00 | 2725594 gs_runsthiscountry
gs_runsthiscountry's picture

Would this be a partial explanation of the correlation break today?  That was noticeable, however, long before the times stated in the above piece. Maybe others can weigh in.

 

Tue, 08/21/2012 - 20:05 | 2725757 Venerability
Venerability's picture

Well, Tyler, it was YOUR Botmasters who had the bright idea of letting seventh graders in Taiwan, gangsters in Bulgaria, terrorists in Somalia, Congressmen in the Heartland, currency traders in Singapore, and World of Warcraft aficionados everywhere in the cyber-universe all share the exact same platforms - and often, the same algorithms.

You should have known there would be some glitches.

Tue, 08/21/2012 - 21:43 | 2726005 disabledvet
disabledvet's picture

what kind of rhythm's? like this one:http://www.youtube.com/watch?v=tgYuLsudaJQ

Tue, 08/21/2012 - 20:29 | 2725819 Yen Cross
Yen Cross's picture

 Reuters bought FX Alliance back in early July. That is the only reason they have more trading volume than EBS. I wouldn't touch that shitbag trading system/platform anyways. FX trading isn't centralized, although the (algos), as Tyler said, like to do their magic in the last hour of trading in N.Y. ;-).

Sun, 09/23/2012 - 11:55 | 2822032 Silversem
Silversem's picture

I like fx trading but mostly i trade commodities using CFD's

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