It happened again. Last week the NASDAQ securities market froze up, crippled by another computer glitch. This time trading stopped for three and a half hours, and all orders were cancelled. Yet again, technical problems have dramatically spotlighted the shortcomings of the modern stock market.
The NASDAQ crashed at 11:48 a.m. Eastern Time. All trading stopped on the exchange, and trades in NASDAQ-listed stocks on other exchanges slammed to a halt as well when the exchange decided to pull the plug about 27 minutes later at 12:14pm, according to news reports. Trading in stocks valued at more than $5.9 trillion simply stopped. Ascribed to a failure in a NASDAQ computers feeding quote and trade information, the freeze continued until 3:25 p.m. while NASDAQ was trying to figure out what happened.