Bloomberg News

NYSE Euronext Halts Trading for Second Day After Technical Fault

June 21, 2011

June 21 (Bloomberg) -- NYSE Euronext suffered a second day of interrupted trading in European equities as a computer malfunction affected processing of transactions in about a tenth of its market segments.

The owner of equity bourses in Paris, Brussels, Amsterdam, Luxembourg and Lisbon delayed trading in the largest Dutch and Belgian stocks by two hours today following the unspecified technical disruption, according to the New York-based company’s website. Bonds, exchange-traded funds and currencies were also affected.

“Disruptions of this sort not only create inconvenience but also cause uncertainty as markets can’t open,” said Luis Benguerel, a trader at Interbrokers Espanola in Barcelona, Spain. “Exchanges know investments in technology to avoid these sort of accidents are a priority so they should act.”

The start of equity trading across Euronext’s markets was delayed for an hour yesterday because of a system fault. The breakdown was the latest such occurrence this year in Europe, where stock transactions are divided among regulated exchanges and alternative platforms.

All trading affected today restarted by 11:05 a.m. Paris time, Euronext said on its website. The Netherlands’ AEX Index and Belgium’s BEL 20 Index resumed pricing as normal from 11 a.m. local time.

No Glitch Details

Caroline Tourrier, a spokeswoman for NYSE Euronext in Paris, wasn’t able to provide further details on the technical glitch when contacted by phone.

Competing exchanges including Bats Global Markets Inc. have said glitches show that traditional operators such as NYSE Euronext and LSE Stock Exchange Group Plc, which manage the bulk of equities trading in Europe, aren’t a guarantee of functioning markets by themselves. NYSE Euronext cited improving computer systems as a goal of its combination with Deutsche Boerse AG, which it announced in February.

European stocks climbed today amid speculation that Greek Prime Minister George Papandreou will win a confidence vote that moves the nation a step closer to avoiding a default. The Stoxx Europe 600 Index rose 0.6 percent at 11:30 a.m. in London.

--Editors: Andrew Rummer, Will Hadfield

To contact the reporter on this story: Alexis Xydias in London at axydias@bloomberg.net.

To contact the editor responsible for this story: Andrew Rummer at arummer@bloomberg.net


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