(Bloomberg) — A software glitch at MEMX LLC prompted stock exchanges including NYSE, Nasdaq and Cboe to temporarily suspend routes to the site.
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The “latent software bug” caused the Members Exchange to incorrectly accept orders and send pricing information, the company said in an update to market participants late Tuesday. The issue, which occurred from 6:50 a.m. to 6:54 a.m. in New York, resulted in 355 quotes from 40 stocks being sent to so-called Securities Information Processors (SIPs), which collect the quotes into a single data feed.
Earlier on Tuesday, the issue at MEMX LLC was cited by exchanges including NYSE, Nasdaq and Cboe, which paused the route to the venue, with some declaring “self-help” – a solution for when venues cannot reach another exchange and then post their quotes to delete. . The three stock exchanges resumed their route before the market opened.
Before the pre-market session began, MEMX said it had “conducted multiple system checks to ensure no residual impacts remained.” The session was also adjusted to start at 8:45 a.m. and proceeded normally, according to the update.
MEMX’s incident was not related to the industry’s move to T+1 this week, according to a person familiar with the matter who asked not to be identified discussing a private matter.
The exchange has since adopted so-called corrective procedures to prevent the error from happening again. No further consequences are expected from the issue.
MEMX was founded in 2019 by banks and market makers seeking to combat rising data and connectivity fees charged by US exchanges. It is backed by companies such as Bank of America Corp., Morgan Stanley, JPMorgan Chase & Co, Goldman Sachs Group Inc. and BlackRock Inc.
(Updates with details on software bugs from the first paragraph.)
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