NYSE “Glitch” Likely to Attract Regulatory Spotlight
Yesterday, on July 8, 2015, the New York Stock Exchange (NYSE) experienced technical problems, causing a suspension in all trading for nearly four hours. The exchange cited a technical “glitch,” and “configuration issue,” but startled the markets and is immediately attracting scrutiny. Already speculation has surfaced that the shutdown was caused by a cyber attack or poor technological infrastructure.
The occurrence is likely to attract attention from New York and federal financial regulators. Although very different, yesterday’s shutdown is drawing comparisons to the 2010 “flash crash,” which inspired Michael Lewis’ book Flash Boys as well as several congressional and regulatory investigations. The event may also attract more regulatory scrutiny of IT infrastructure in the financial sector in general.