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Fwd: NYSE Trading Halt Triggered by 'Network Storm'

  • From: Joseph Grajewski
  • Date: Thu Jun 02 15:59:48 2005

I dont want join the ranks of conspiracy theorists, but i must point out the coincidence that this minor digital "spanking" occurred exactly at the same time the NYSE members (folks whom own seats on the exchange) filed suit to block NYSE's proposed merger with electronic trading firm Archipelago Holdings Inc., saying the deal is unfair to exchange members.

The members feel the old "manual" way of doing trades (where they get a cut of every transaction) is best and that they dont need the electronic trading. --- In fact one of their contentions is that the online system is not foolproof and prone to being compromised or disrupted by terrorists etc. ...and get this -- that they are the only ones -- in face to face trading -- that can give a "fair" transaction ---

here is the article on the members trying to block the merger: AR2005050901325.html

Begin forwarded message:

Trading resumed normally at 9:30 a.m. Thursday.

In a statement, the NYSE blamed the system failure, which suspended trading at 3:56 p.m., on a communication problem. In an interview Thursday with cable-news channel CNBC, NYSE CEO John Thain said the problem was caused by a "network storm" in which "an error message was created and then duplicated millions of times," overwhelming both the system's primary and backup network routers.

[snip] articleID=163703141