Nasdaq Accepts Blame For 3-Hour Trading Halt

Law360, New York (August 29, 2013, 6:27 PM EDT) -- Nasdaq OMX Group Inc. on Thursday largely accepted responsibility for an Aug. 22 technology glitch that temporarily halted trading on the exchange and wreaked havoc on Wall Street, saying a preliminary review of the incident had identified issues "clearly within" the firm's control.

Nasdaq said its internal review had identified "a latent flaw" in the software code for its securities industry processor, or SIP, which consolidates and disseminates prices for Nasdaq-listed stocks. A connectivity issue between the SIP and rival NYSE Arca impeded the SIP's ability...
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