The oldest American exchange reported an “ongoing issue with the NMS SIP,” or the securities information processor for NYSE stocks, at about 1:40 p.m. in New York. Two NYSE venues were “experiencing issues publishing and receiving trades and quotes,”
The S&P 500 sank 1.5 percent to 1,935.09 at 4 p.m. in New York, the lowest level since Aug. 12. Today’s slide was the biggest in almost three weeks. Selling accelerated in afternoon trading as index futures contracts expiring in December slipped below 1,940, a level where two previous declines had ended earlier today.
Critics including some regulators and market participants say that HFT trading, which captured the spotlight in the May 2010 flash crash, serves little purpose, may distort the market and leaves retail investors at a disadvantage.
U.S. stocks fell, with the Standard & Poor’s 500 Index sliding a second day, as data showed weaker-than-forecast growth in service industries and concern grew that the political impasse could lead to a recession.
Nasdaq OMX Group Inc. halted trading for three hours yesterday to protect the integrity of markets as a technology malfunction left some investors without stock quotes, Chief Executive Officer Robert Greifeld said in his first public remarks since the incident.
Knight Capital Group Inc. told some clients of its market-making unit that a “technical issue” was affecting its systems and advised them to route orders elsewhere as dozens of U.S. stocks swung more than 10 percent today.