Displaying items by tag: India - Eyes on Indonesia

Asia’s stock exchanges have had smoother starts to a week.

India’s National Stock Exchange, the country’s biggest bourse, suffered its longest ever halt on Monday after an unidentified glitch disrupted orders and price feeds, forcing the operator to freeze all equities and derivatives trading. Indonesia was also hit with a data issue and responded with its own shutdown. In both cases, brokers said that confusion reigned even after the venues had announced the suspensions.

It all added up to an unhappy Monday, with volume in Indonesia hitting its lowest level in a year while the benchmark index fell 0.7 percent. India’s NSE, already under pressure from an investigation into its practices toward high-speed trading, and with a proposed initial public offering seemingly in limbo, tried and failed to reopen its markets at least twice, before finally restarting after more than two-and-a-half hours.

“Lessons need to be learned from incidences like these and utmost precaution should be taken to avoid a recurrence,” said Dipan Mehta, an NSE member. “The bourse could also be efficient in communicating the issues, if they happen again, and minimise the chaos that prevails in these circumstances.”

NSE’s problems started soon after the open, when traders were unable to execute trades and prices were not updating, according to Arun Kejriwal, founder of Kejriwal Research and Investment Services. The bourse shut both the cash and derivatives segments at 9:55 a.m. local time and said premarket trading would resume at 10:45 a.m. Technical issues persisted, forcing it to delay the restart to 11 a.m. before it finally reopened at 12:30 p.m. A pricing display issue was still being addressed even after that.

Published in Business
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