UK Today News: Stock Market Update – What Really Happened to the New York Stock Exchange (NYSE) ?
Stock Market Update, NYSE: More than 24 hours after the US stock market just lost control and went haywire, there seems to be still no clear reason what actually triggered the plunge.
In an interview this morning, the Head of the NYSE told the press that the NY stock exchange’s electronic system is a bit of a worry and it is called Liquidity Replenishment Point.
The system blew off yesterday, and there was rapid stock sell off, which included P&G and 3M – who were both part of the Dow Jones group. The system halts the trading process and lets the sellers and buyers consider the situation. Some experts came up with the following conclusion why it might just have happened.
P&G and 3M were the reasons that triggered off the LRP process including other stocks. This stopped the trading in the NYSE for a brief period of time. In this brief time, electronic trade orders were sent to other small exchanges. The other exchanges were not able to handle the volume of orders that were in process, and that’s the time when P&G and 3M fell face forward.
The decline in these two stocks was accounted to be around 400 points. And later, when human trade system took control, the price went back up again.