According to reports, NASDAQ, the second largest stock exchange in the USA and World, halted trading today for 3 hours due to a glitch in its computer system. This is bad news for one of the more popular exchanges that newer companies tend to flock as opposed to the older New York Stock Exchange (NYSE).
Previously, NASDAQ was in the headlines when Facebook debuted on the exchange and trading in the stock was suspended for hours before trading could begin, creating confusion and losses for many. The exchange was slapped with a US$10 million fine and suffered additional losses by paying out compensation to investors as a result of the failure.
Many were fearing that Facebook may shift the listing from NASDAQ to the NYSE but so far this has not happened.
One would expect these failures in third world countries and not in a developed one. The problem with failures is that it reverberates around the world as other exchanges rely on the NASDAQ for prices. In this case, over 50 exchanges worldwide were affected which could result in losses for some investors. More importantly, it affects investor and public confidence in a big way.
Read more | Nasdaq suffers reputation hit after trading freeze