Levine pointed out that, normally, the other exchanges wouldn’t be able to make a trade without checking the stock price with the NYSE’s price, but they can work around that in the event of a NYSE shutdown.
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Update 12:30pm: The NYSE said on Twitter that the technical issue and the subsequent decision to halt trading was not due to a breach in cyber security.
The Standard & Poor’s 500 index increased 27 points, or 1.3 percent, to 2,074 and the Nasdaq composite gained 71 points, or 1.4 percent, at 4,909.
There are now roughly 13 stock market exchanges – most of which can handle trading in all stocks.
NYSE eventually restarted all customer gateways and resolved problems related to unfinished trading orders.
Officials and the exchange have said that there is no indication that the problem is the result of a cyber-attack. Officials told the president there were no malicious actors involved. However, US Homeland Security said the issues appeared unrelated and were not the result of “nefarious” activity. Trading on the NYSE began to resume at 3:05 p.m., over three hours after it was suspended.
Other exchanges compete for the orders made to buy and sell stocks. But trading went on.
The chairwoman of the USA financial watchdog SEC added in a statement: “We are in contact with NYSE and are closely monitoring the situation and trading in NYSE-listed stocks”. Arnuk says the other exchanges are handling the trading “fluidly and smooth”. The Shanghai index has lost nearly a third of its value in the last month.
For years the hacker collective “Anonymous” has threatened to take down the New York Stock Exchange. The Dow slumped 261 points the day before.
There are 13 exchanges for trading – which includes the NYSE – so when traders see trouble at one exchange they direct their trades elsewhere. Both Nasdaq and Bats said their venues were operating as normal during the outage. In 2013, trading in options in Chicago was halted due to an outage caused by software problems.
After installing new software before markets opened Thursday, the exchange began hearing about connectivity issues between customers and the trading units that had been upgraded.
“Everyone got whipped into a frenzy about the NYSE tweet… hmmm… wonder how stocks will do tomorrow?” the group tweeted Wednesday night.
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The New York Stock Exchange is back in business, but investors are still feeling a little queasy about Greece and China.
