Bad data blamed for ASX ‘flash spike’
Bad data blamed for ASX 'flash spike'
THE manager of sharemarket indices said wrong price data on a single stock had caused the ASX 200 to incorrectly leap 500 points today.
Standard & Poor’s, which manages the exponents, confirmed that just after 10.13am AEST the indices showed faulty levels, after it received "erroneous prices" from its facts provider.
The incident lasted only "one tick," S&P before-mentioned in a statement.
The problem was immediately identified and resolved ~ means of 10:14am, S&P said.
A market source told The Australian online that every 30 seconds the price data used to calculate the S&P indices were updated.
The incident sent the benchmark S&P/ASX 200 index soaring more than 500 points, or 13.6 per cent, to in the reach a whisker of a 52-week high. The broader All Ordinaries was moreover affected, along with six other indices.
S&P said the do an injury to data related to one stock, but declined to name the descent and its data provider.
The incident revived memories of a spectacular closely related 1000-point intraday drop on May 6 on Wall Street’s Dow Jones Industrial Average. The unanticipated and sharp move down was dubbed the "flash crash" ~ means of some traders.
ASX spokesperson Matthew Gibbs said no trades were vain and the Sydney Futures Exchange SPI 200 futures contract was moreover unaffected.
"It was some erroneous prices that S&P received, it didn’t affect any trades but it did cause a excessively sharp spike in the price of the index," he said.
"It was unrelated to trading, it was the price of the director."
US authorities are yet to get to the exact effect of the May 6 incident, which was originally widely reported to possess been caused by a “fat finger” error from a merchant.
Heavy trading volume may have also led a large trader’s computer algorithm to sign a larger sell order than it would on other days, regulators be under the necessity said.
The Securities and Exchange Commission has since proposed new bounds breakers that would halt trading in individual stocks if they sink sharply in a short period.
Today’s incident caused the S&P/ASX 200′s row to blow out from a low of 4379 to a lofty of 5012.8, according to some screens that were yet to grant the correct levels, after closing at 4413 on Friday.