Bloomberg News

Euronext Suffers Third Breakdown in Week as CAC 40 Halted

June 27, 2011

(Updates with trader comment in fourth paragraph.)

June 27 (Bloomberg) -- Trading in stocks on France’s benchmark CAC 40 Index was halted for more than 45 minutes by a systems malfunction, the third computer-related outage on exchanges operated by NYSE Euronext in a week.

Shares in the 40 companies stopped changing hands at 11:57 a.m. in Paris and resumed at 12:45 p.m., New York-based NYSE Euronext said on its website today. Transactions for CAC 40 companies listed on other exchanges were unaffected, with STMicroelectronics NV updating in Milan and ArcelorMittal transactions continuing in Amsterdam.

Trading has been interrupted repeatedly by network failures this year in Europe, where stock transactions are divided among regulated exchanges and alternative platforms operated by companies such as Chi-X Europe Ltd. London Stock Exchange Group Plc experienced a four-hour outage on Feb. 25, 11 days after bringing a new network online.

“When it comes in the middle of the trading day, it’s difficult because we’re working on several parallel markets that still are operating,” said Yves Marcais, a sales trader at Global Equities in Paris. “It’s bothersome, but our clients understand that we’re a victim of Euronext’s problem.”

Last Week’s Glitches

The start of equities trading was delayed for an hour on June 20 on bourses operated by NYSE Euronext in Paris, Amsterdam, Brussels, Luxembourg and Lisbon because of an unspecified computer malfunction. Transactions in the largest Dutch and Belgian stocks were halted for two hours on June 21.

Caroline Tourrier, a spokeswoman for Euronext in Paris, said the company didn’t yet know what had caused today’s glitch.

NYSE Euronext was formed when the operator of the New York Stock Exchange bought Europe’s second-largest exchange in 2007. Competing venues including Bats Global Markets Inc. have said glitches show that traditional operators such as NYSE Euronext and LSE aren’t a guarantee of functioning markets by themselves. NYSE Euronext has cited improving computer systems as a goal of its combination with Deutsche Boerse AG, which it announced in February.

--Editors: Andrew Rummer, Chris Nagi

To contact the reporter on this story: Adria Cimino in Paris at acimino1@bloomberg.net

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


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