Bats Uses Chicago Backup After Network Issue Shuts BYXSam Mamudi
Bats Global Markets Inc.’s BYX Exchange reopened using a Chicago backup site after a computer malfunction forced the equity market to shut for three hours.
Bats, the Lenexa, Kansas-based company that’s planning to merge with Direct Edge Holdings LLC to become the second-largest U.S. stock exchange operator, said a programming bug in a vendor’s network software caused the disruption that closed BYX at 9:44 a.m. New York time. That exchange accounted for 2 percent of daily U.S. volume in September, according to data compiled by Bats.
While the switch to Chicago took effect at 12:40 p.m. New York time, volume on BYX didn’t accelerate until about an hour later, data compiled by Bloomberg show. This was the first time Bats turned to the backup site in Chicago, spokesman Randy Williams said. Three previous uses of a facility in Nutley, New Jersey, were scheduled in advance, he said.
Today’s pause followed a series of breakdowns at bourse operators around the world, including a three-hour trading halt on Aug. 22 for thousands of U.S. stocks listed by Nasdaq OMX Group Inc. Securities and Exchange Commission Chairman Mary Jo White told the industry during a Sept. 12 meeting to collaborate on making markets more reliable.
Bats shut the BZX Exchange, its largest U.S. stock exchange, for 50 minutes on Aug. 6 because of a network malfunction.