Technical glitch hits ASX 

“Today, ASX encountered issues with our equities trading system, ASX Trade,” ASX spokesman Matthew Gibbs said.

“The primary issue arose from a hardware failure in the main database used by the system. This had a number of knock-on consequences that affected the operation of the market. These included a delay to the market open and the decision to close the market early due to ongoing issues that impacted the proper functioning of the trading platform.

“The issues were not in any way related to cyber security.”

The ASX is now focused on ensuring the market re-opens on schedule tomorrow morning, after it shut down for a second time at 2.07pm (AEST) today, with all stocks placed back in “enquire” status.

That action followed a 90-minute delay this morning as the ASX probed “a problem with a component that allows it to manage individual stocks.”

All up, the market spent only 57 minutes in regular trade through the session.

Based on recent trading volumes, the initial 90-minute delay would have cost around $1 billion in lost trading turnover. With the sharemarket not reopening this afternoon that figure will comfortably top $2bn.

The activity, or lack thereof, comes while new ASX chief executive Dominic Stevens is travelling overseas.

Rival Australian trading exchange Chi-X is operating as normal through the afternoon.

“Participants are advised that notwithstanding ASX’s further technical difficulties causing the ASX market to be placed into the enquire phase, the Chi-X market continues to operate as normal,” Chi-X advised in a statement.

“Participants will be kept informed of any further developments.”

Ahead of the latest shutdown, the benchmark S&P/ASX 200 index inched down 1.9 points, or 0.04 per cent, to 5,294.8, while the broader All Ordinaries index eased 3 points, or 0.06 per cent, to 5,393.7.

The initial 90-minute delay this morning led into an issue that saw a group of stocks — with codes beginning with N-R — briefly entering “open” instead of the assigned “pre-open” state at 11.10am (AEST).

This action forced the ASX to cancel trades made within a 43-second window and forced N-R stocks to be temporarily suspended while the remainder of the market was trading as normal.

The N-R grouping resumed trading at 1.20pm (AEST) after the ASX said the issue had been “resolved”.

The initial issue had been tagged as being “rectified” by 11am (AEST), with the market opening at 11.30am (AEST).

However, suggestions it was working through today’s problem with its tech supplier offered no certainty for traders on its ongoing operations.

“ASX is continuing to work with its technology vendor to prevent a recurrence,” Mr Gibbs said earlier.

The last time the entire bourse was put in “enquire” status was February 2014, when the market was closed for around 30 minutes in the afternoon.

That incident was of minor significance compared to two delays in 2011 that caused billions of dollars’ worth of lost turnover.

On October 27, 2011, the ASX was frozen for four hours across morning and early afternoon trade, with the issue impacting trade from just after the open to the chagrin of traders.

The issue at that time was caused by an upgrade implemented the weekend prior, with the system used to process traded failing.

Earlier the same year the exchange was offline for around an hour and a half during afternoon trade on February 28.

Source: The Australian BR

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