TORONTO (Reuters) – The Canadian stock market, the sixth largest in the world, rallied market participants from major exchanges on Friday after a failure, but will resume trading on Monday after the resolution of "internal technical issues", the exchange operator said ,
The TMX Group Ltd, which operates the Toronto Stock Exchange and smaller trading platforms in Canada, said in a series of tweets that all users " equally affected "are unable to connect to our exchanges" and decided to shut down the markets for the rest of the day.
The operator said he has recognized the problem, is working to fix it, and the Trading would resume at its regular assembly hour.
The failure was not due to "a hack," a Toronto Stock Exchange spokesman said.
Shutdowns t Rarely, because exchange systems usually have backup systems that go online quickly in the event of a technical failure.
The last major failure of the TSX occurred nearly a decade ago, when a system error associated with data feeds traded for a full day in 2008 hired, including the small cap TSX Venture Exchange.
"In true Canadian fashion, most traders declared" Beer Watch "when they saw that the TMX was closed," said Karl Schamotta, head of global product and market strategy at Cambridge Global Payments. "It certainly seems to be a technical mistake, but there does not seem to be much information on what caused it."
The TMX, which has targeted Saudi Arabia's IPO overseas exchanges and partnerships with local stock exchanges is seeking the world, declined to get closer to the nature of the technical issues.
The Ontario Securities Commission said it was in contact with the TMX and added, "We continue to monitor the situation closely."
"The remarkable thing is that defaults do not occur more frequently – these are large and complicated systems and they trade a remarkable amount of stock," said Bryan Routledge, a professor at Carnegie Mellon University and a finance technology expert.
Defaults can cause inconvenience to investors and can be costly for the exchange itself.
The US Securities and Exchange Commission, for example, last month punished the New York Stock Exchange of Intercontinental Exchange Inc. and two affiliate exchanges for a total of $ 14 million for several regulatory failures related to disruptive market events.
US listed shares of several Canadian-based companies continued to trade, although their Toronto-listed securities were not serviced by the default. For example, the NYSE NYC shares listed on the NYSE were still in trading hours after the company's TSX-listed shares last traded at 13:38. EDT (1738 GMT).
"There should be instant fail-safe backup systems," says Norman Levine, managing director of CFA Portfolio Management. "Nobody has to get in on a specific date, but sometimes people have to get out, so if you had to get off today, that could have been a problem." The Toronto TMX team first reported the problem shortly after 2:00 pm on Twitter. EDT, which has been updated several times over the course of an hour to say that the problems are ongoing and that an investigation is in progress. The Toronto Stock Exchange's S & P / TSX Composite Index, the main Canadian index, rose 0.2 percent to 15,688.93 before issuance began. The market is open between 9.30 and 16.00. SUMMER TIME. "It's deadly to them (TMX) for today," said Peggy Bowie, senior trader at Manulife Asset Management. "Orders have been moved to other markets, and to my understanding, everyone will use the last traded lottery, no matter where it was traded." The TMX announced that it would submit a full list of closing prices on Friday.
The closing prices for the shortened session on Friday are determined by the final "Board Lot" trading price, which relates to transactions of at least one specific size. For shares that cost at least $ 1 per share, a share package is 100 shares or more. Penny Stock Board lots have minimum sizes of 500 or 1,000 stocks. TMX operates numerous Canadian exchanges, including the Small-Cap Venture Exchange, the TSX Alpha Exchange, and the Montreal Exchange, which trades derivatives, options and futures. TMX exchanges are responsible for the majority of Canadian securities trading.
Additional coverage by Fergal Smith, Matt Scuffham, Jim Finkle of Toronto and Saqib Ahmed, John McCrank of New York; Letter from Amran Abocar; Editing by Tom Brown and Dan Grebler