On 16th November the Australian stock Market shut down due to data issues. After the trading session started, it was open for about 30 minutes before the software issue shut it down. After the closing, the stock market did not reopen the same day. This unexpected shutdown is now one of the longest ones in history.
What happened after the Australian stock market shutdown?
After the crash, NASDAQ and ASX ltd were able to identify the issue and were able to reopen the market the following day at 10 A.M. In over a decade the stock market hasn’t seen such a long shutdown. The issue happened even after a complete year of testing of the ASX as its equity market went live. The manager even apologised for the problems and said they “fell short of the high standards we set ourselves”.
As the issue was identified the Australian stock exchange said that they would reopen the market on Tuesday at 10 A.M. The market was bullish before the trading was halted at 10:24 am, and even the S&P/ASX 200 Index was up by 1.2%. Talking about the same the CEO at Red Leaf Securities in Sydney, John Athanasiou, said, “We are aiming to be an international financial centre, and this hurts our global reputation. Bull or bear market, there is never a good time for the bourse to go down.”
Market troubles in the past
There have been many issues in the past in the ASX ane, even New Zealand’s stock market. In 2016, the ASX closed down due to a hardware malfunction which resulted in a delayed open and early closure. Another instance of such problems was in 2011 when due to technical issue just before the trading open the market was delayed by 4 hours.
The Australian Stock Market is not the only one to face such issues. Even New Zealand’s stock market was halted for 4 days after a series of cyberattacks crashed its site. France and Belgium markets were also shut down in October after a software issue was detected.
With so many technicalities, these things might happen, and one cannot actually blame companies until its negligence. But the fact that such disruptions mighty lead to losses for traders and even sway the entire market direction is a bigger concern. What is your take on such issues occurring in various stock markets? Let us know in the comments below. Also, if you found our content interesting, do like and share it with your friends.