NYSE Halts Trade due to Technical Issues

The NYSE halted trading before noon and resumed trading before the end of the day due to what the NYSE described as internal technical issues. SEC Chair White announced that the SEC was in contact with the NYSE.

Lofchie Comment: The trading halt at the NYSE will pose an interesting challenge to the regulators. Will they respond to the NYSE’s technical failure by bringing an enforcement action? Previous cases demonstrate that enforcement actions are simply not an effective means of preventing future technology failure. Instead, the regulators need to encourage information sharing that will enable firms to develop more robust systems to prevent and respond to failures. In this case, it does appear that the markets as a whole were completely robust in working around the NYSE’s shutdown.

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