Test data blamed for wild swings in Nasdaq-listed stocks

Erroneous test data provided by third party vendors caused wild swings on prominent Nasdaq stocks in after hours trading on the eve of the 4 July US holiday celebrations.

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Test data blamed for wild swings in Nasdaq-listed stocks

Editorial

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The prices of several stocks appeared on some major finance websites to either spike or plummet after market close, with more than a dozen major Nasdaq listed companies such as Apple, Amazon, Google and Microsoft all set to the same share price of $123.47.

"As part of its normal process, the UTP distributed test data and certain third parties improperly propagated the data. Nasdaq is working with third-party vendors to resolve the matter,” says the exchange operator in a statement.

The release of the bogus data to prominent sites such as Yahoo, Google and Bloomberg caused confusion in the market, with shares in Microsoft appearing to fall by 50%, while Apple's stock showed a 348% spike.

The actual prices of the stocks were not affected and no trades were completed at that price, a Nasdaq spokesman confirms.

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Comments: (1)

Ketharaman Swaminathan Founder and CEO at GTM360 Marketing Solutions

In this day and age of low latency algo trading, curious to know how the Nasdaq spokesman asserts so confidently that "no trades were completed" at the wrong prices!

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