The same logic doesn’t count for the stock exchange themselves. Running an exchange shouldn’t be regarded as rocket science. Open your trading pit or computer system for trading and sell the price information to subscribers. Make money on both sides.
Euronext not the bank of Switzerland
Messing up is rather common for the employees of NYSE Euronext. Introducing the wrong new option series or blocking trading altogether by imposing the wrong price limits happens almost on a daily basis. An alcohol raid in the Euronext premises may reveal surprising results.
Yesterday NYSE Euronext messed up the price feed. All stocks in the Amsterdam midcap index traded in negative territory. Heavy weight Draka even dropped as low as 9%. With 25 stocks in the red zone, the market average of the index was a plus of 2% according to Euronext. It doesn’t take a mathematician to note the error.
“No traders harmed”
Turned out Euronext used the wrong closing prices of the previous day. According to Euronext’s spokesman they are still investigating the matter, and the unreliable information hasn’t led to the wrong trades. Investigating is fine, but wouldn’t put my money on the other part of the statement..
(Photo by Aviva – the Canadian girl that is, not the British company)