How to Make the Nasdaq System More Resilient

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Aug. 23 (Bloomberg) -- Cast's Lev Lesokhin comments on the Nasdaq trading disruption. He speaks with Cory Johnson on Bloomberg Television's "Bloomberg West." (Source: Bloomberg)

Problem, did it catch you by surprise?

Should we expect this kind of thing with the volume the nasdaq trades he stays?

Unfortunately we are almost programmed to expect these things.

For the past week we have seen three with goldman, the one in shanghai.

The last couple months, there has been more activity in terms of outages and the capital markets.

The level of complexity plus the levels of volumes that they are experiencing are starting to drive this, unfortunately.

What do we know about what actually happened and what might have been done to prevent it?

Click there is a lot that probably could have been done to at least try to prevent it, a bit more than what was done.

In terms of what happened, i think that is something the engineers at nasdaq know about at this point.

Normally by this time the situation would have been done and obviously bae systems were fixed and brought up online event three hours.

But there are things that i think bob was referring to in the comments you just aired in terms of defensive driving that could take place and i expect will take place of more frequently of the exchanges as well as at the major market makers.

One of the things that struck me, because i called around the trading decks -- trading desk yesterday.

No one knew what was going on.

Yet the nasdaq has spent vast fortunes to create a stock promotion machine or they have the studio down in times square and the billboards everywhere and all these ways to broadcast and convince people to buy stocks, but they were not using that to communicate what was happening yesterday.

What is your sense about why they were not explaining what was going on?

In a situation like this, my feeling is that nasdaq acted correct the.

-- correctly.

You want to take care of the market participants and treat the folks actually directly trading on the exchanges and make sure their questions are answered and that you are helping them kind of get through the process.

I think to nasdaq's credit, they handled that well as well as getting the systems up and running within a three-hour timeframe.

They did not rush it, but they did not take too long either.

From a communication standpoint they were probably right not to go to public too soon.

Today the public is talking about what happened -- i was talking to traders during the day.

Market participants to did not know what was going on.

They saw prince still happening even through the day and were not sure what was going on.

Respectfully, it does not seem like they clearly mitigated what they were doing and what was happening.

This is something that i have seen through some folks who happen to be on the trading floor.

It is not my particular area of focus on.

From what i have seen and what i have heard, a tried to communicate.

Perhaps they could have done better at that.

The area to focus on is the defensive driving point that bob alluded to earlier, the robustness and the resilience of the systems to ensure this type of situation does not happen in the first ways.

-- first lace.

Nasdaq -- you can look at them as a utility.

They provide a trading utility to the markets.

Unfortunately for utilities in general, power utilities as well, you only realize they are there when the power goes out.


I guess final weston, but the utilities are most needed when they -- i guess final question, but the utilities are most needed when they fall on their face.

Do you think this was a good direction for bob to lead the nasdaq?

I think if i were in bob's shoes or the shoes of the leadership of any of the exchanges or market makers, i would be concerned about the level to which technology issues are wrecked -- a threat to my job.

I think this is leaders are starting to take that more seriously.

They have put this issue on a development team.

Push them to go as fast as they can.

It has been more of a drag race

This text has been automatically generated. It may not be 100% accurate.


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