Industry Research : Help Desk Hitch Led to ASX Trading Glitch
ASX Limited was the victim last year of a 45-minute delay in response from a service provider when its trading system fell over on October 27, according to a report from regulator ASIC yesterday.
As part of the regular supervision reports the Australian Securities & Investments Commission produces on the ASX, it was revealed that when the ASX system failed just after trading opened at 10.05am, it called service provider NASDAQ-OMX's overseas help desk.
But "while contact with NOMX was initiated within 15 minutes of the incident occurring, it took over 45 minutes for a NOMX support person with a requisite understanding of the trading system's underlying code . . . to be brought in to assist", the report said.
The help desk is understood to have been either in New York or Stockholm. The outage ended up lasting four hours on what was also an options expiry day, causing extra difficulty.
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Trading did not resume until 2pm, leaving only two hours to tidy up the options expiries and fill orders instead of six hours of trading.
The outage was triggered by an upgrade that had been implemented the previous weekend, with the intention of cutting down the latency of the internal network supporting the primary trading system.
In its report, ASIC said it had asked the ASX to make sure its service provider had an office in Australia to shorten the response time.
It also noted it had looked into possible conflicts because ASX chief executive Elmer Funke Kupper is also a director of Tabcorp, where he was previously chief executive.
ASIC concluded that the ASX had enough systems in place to avoid a conflict.
Posted by Veronica Silva Cusi, news correspondent
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Published: Tuesday, June 26, 2012