Markets

Nasdaq apologizes for Australia's stock exchange trading outage

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Key Points
  • Exchange operator Nasdaq on Friday apologized for an Australian stock exchange outage last month, which wiped out nearly a full session of trading.
  • Australia's central bank and the corporate regulator had expressed concerns over bourse operator ASX Ltd's trading systems after the glitch halted trade on Nov. 16.
  • ASX and its technology provider Nasdaq said they had identified the root cause of the outage as a software issue that caused incorrect functionality in the tailor-made combinations order book.
People are reflected in a window at the Australian Securities Exchange in Sydney on March 17, 2020.
David Gray | AFP | Getty Images

Exchange operator Nasdaq on Friday apologized for an Australian stock exchange outage last
month, which wiped out nearly a full session of trading.

"We take our role as a provider of mission-critical technology seriously and apologize to ASX, its customers and all those impacted," Nasdaq Chief Executive Officer Adena Friedman said.

Australia's central bank and the corporate regulator had expressed concerns over bourse operator ASX Ltd's trading systems after the glitch halted trade on Nov. 16.

ASX and its technology provider Nasdaq said they had identified the root cause of the outage as a software issue that caused incorrect functionality in the tailor-made combinations (TMC) order book.

TMC is a tool primarily used by retail and institutional traders of equity derivatives which enable the trading of multiple options in one transaction, the companies said.

ASX said it plans to reintroduce some TMC functionality on Dec. 21.