Dec. 12 (Bloomberg) -- TMX Group Ltd., owner of the Toronto Stock Exchange, said it has resolved a technical error that caused the calculation of its benchmark equity index to be incorrect.
The Standard & Poor’s/TSX Composite Index didn’t receive accurate data for stocks with tickers from A through L starting at 10:42 a.m. in Toronto, Carolyn Quick, a spokeswoman for the exchange, said in an interview. The company said the data issue was resolved at 12:21 p.m.
“It happens once in a while with the TSX, makes us look like small potatoes compared with the U.S. as they rarely have these issues,” said Barry Schwartz, a fund manager with Baskin Financial Services in Toronto whose firm manages about C$450 million ($457 million).
A feed that provides index data for the S&P/TSX was incorrect, according to Quick. The malfunction didn’t affect trading on the Toronto Stock Exchange, the company said in a statement.
The S&P/TSX rose 70.73 points to 12,353.09 today and trading volume was 40 percent higher than the 30-day average.
The issue was different from a prior glitch that disrupted trading on Canada’s main stock market four years ago. The Toronto Stock Exchange suffered a daylong outage on Dec. 17, 2008, after a computer failure prevented quotes from being disseminated. Five months later, on May 15, 2009, the bourse faced an hour-long malfunction that disrupted trading.
“Generally the disruptions are not lengthy and there are backup systems,” Brian Huen, managing partner with Red Sky Capital Management Ltd., said in a telephone interview. “It doesn’t make me want to trade on the TSX any less, plus I don’t really have another option anyway.”
The S&P/TSX is the largest market for mining and oil-and-gas listings in the world, according to TMX. There is more than C$2 trillion in total market capitalization among companies listed in the Toronto Stock Exchange and Venture exchanges, according to TMX.
TMX, based in Toronto, was acquired by a group of Canadian banks and pension funds in September in a C$3.73 billion deal that combined the company with Canada’s securities clearinghouse and its Alpha Exchange competitor.
The transaction ended a 15-month effort by some banks and pension funds to buy TMX. Maple Group Acquisition Corp. made an unsolicited bid in May that challenged TMX’s friendly combination with the London Stock Exchange Group Plc. The LSE deal collapsed in June 2011 after failing to get enough shareholder support, leaving Maple as the sole suitor.
To contact the editor responsible for this story: Lynn Thomasson at email@example.com