Failures in stock exchange trading systems are not uncommon. Previously, many stock exchanges around the world experienced outages. In the past few years, the frequency of occurrences has increased significantly. On September 27, there were abnormalities in stock trading on the Shanghai Stock Exchange, and transaction confirmation was slow. In this regard, the Shanghai Stock Exchange issued two announcements, first at 11:00 in the morning saying that "relevant reasons are being investigated", and then in the evening it issued an apology announcement.
"After the opening of the market today, the stock auction transaction of this exchange experienced an abnormal situation of slow transaction confirmation, which caused the transaction to be affected. After handling, the stock auction transaction gradually resumed from 11:13. The exchange deeply apologizes for the occurrence of this abnormal situation," the exchange said.
China Business News has noticed that it is not uncommon for stock exchange trading systems to malfunction. Previously, many stock exchanges around the world had experienced outages. In the past few years, the frequency of occurrences has increased significantly.
Just in March this year, Nasdaq Inc. said that due to technical failures, pre-market trading on its exchange was suspended for more than two hours, after which all systems returned to normal operations. According to a statement on the exchange’s website, the issue occurred in the exchange’s matching engine.
This is the second time Nasdaq has experienced a technical failure in three months. In December 2023, a system error occurred on Nasdaq that affected thousands of stock orders, causing some orders to be canceled and incorrect liquidation information submitted.
In January 2023, a trading accident also occurred on the New York Stock Exchange (hereinafter referred to as the "New York Stock Exchange"). On January 24, 2023 local time, many stocks on the New York Stock Exchange showed unusually large fluctuations when the market opened, and some stocks even suspended trading, including some large blue-chip stocks. Later, the NYSE said at about 9:50 a.m., 20 minutes after the market opened, that all its systems were operating normally.
In a subsequent statement issued by the New York Stock Exchange, it mentioned a system for U.S. stock trading that is designed to prevent trading known as "limit up/down (LULD)". The NYSE canceled some early trades that day, citing its "manifestly erroneous" execution rules.
Prior to this, in 2020, major exchanges around the world experienced frequent failures, making it the year with the most failures in recent years. In February of that year, the Toronto Stock Exchange announced that it would suspend stock trading due to "technical issues with the order system."
On August 31, 2020, the New Zealand Stock Exchange website was attacked by cyber hackers and crashed. This was the fifth consecutive trading day that the exchange was attacked by hackers. It is reported that the network crashes that occurred for five consecutive trading days were caused by anonymous distributed denial-of-service attacks (DDoS attacks). This attack temporarily interrupted the network, causing the online service system to go down, and investors were unable to view market conditions.
The outage of Japan's Tokyo Stock Exchange in October 2020 is even more famous. The exchange had to suspend trading for a full day on the first trading day in October due to a system technical glitch, triggering the most serious technical glitch in the history of the Japan Stock Exchange.
A few days later, on October 19, Euronext, Europe's largest stock exchange operator, also experienced technical failures, which forced several European stock exchanges to suspend trading for more than two hours, setting the stage for Euronext's largest trading suspension in the past two years. Affected by this, European stock markets once experienced a panic drop after the resumption of trading, dragging European and American stock markets down to close. A spokesman for Euronext said the trading failure was mainly caused by a technical glitch in a system responsible for managing data persistence.
Then on November 16, 2020, the Australian Securities Exchange (ASX) was forced to close for one day due to a trading system failure. On November 18 of that year, the Hong Kong Stock Exchange issued a statement stating that the market system conditions of Hang Seng China Enterprises Index futures and options and small-cap Hang Seng China Enterprises Index futures and options may display errors.