European Stock Exchanges Face 'Technical Glitch' Halting Trading for a Day, Leading to Trade Nullification

[Image source=Reuters Yonhap News]

[Asia Economy Reporter Jeong Hyunjin] Euronext, the pan-European stock exchange, invalidated all trades executed after 5:30 PM Central European Time (CET) on the 19th (local time) following a technical glitch that halted trading and abnormal stock price movements after trading resumed.

According to Bloomberg and other sources, Euronext issued a statement announcing the cancellation of all asset trades except for commodity transactions. Bloomberg reported that this decision appears to have been made due to unusual stock price fluctuations before the market close.

Earlier, trading was suspended at 9:49 AM due to a technical issue at Euronext-operated exchanges including the Paris Exchange, Brussels, Amsterdam, Lisbon, and Dublin exchanges. At the Paris Exchange, stock trading resumed from 12:45 PM and derivatives trading from 12:50 PM, but some transactions such as guarantees were not resumed.

This marks the second issue in one day at Euronext alone. The last time Euronext experienced a trading halt was about a year ago in September, when stock options trading was suspended in Amsterdam, Brussels, and Paris. Euronext stated that it is investigating the cause of these problems and will take measures to ensure smooth opening and trading on the 20th.

Such technical errors at stock exchanges have been occurring worldwide recently. On the 1st of this month, the Tokyo Stock Exchange system under Japan Exchange Group (JPX) experienced a malfunction, causing an unprecedented full-day trading halt. On the 9th, the Mexican Stock Exchange also suspended trading due to a technical error. Michael Hewson, Chief Analyst at CMC Markets, pointed out, "There have been numerous technical failures in global stock markets over the past 12 to 18 months," adding, "This indicates a lack of investment in technology."