Foreign. If you've been paying attention to the market recently, you know, not long ago, there was Mayhem prompted by the New York Stock Exchange which is a popular exchange that lists many auctions. 15 seconds into the trading day, many many different equities were trading haywire and then they just stopped. Everything was halted and a lot of confusion.

Apparently, we figured out what happened. Here's the tldr of the situation: New York Stock Exchange Mayhem Traced to a staffer who left a backup system running. So they're saying human error more than 700 miles from Wall Street The New York Stock Exchange backup data center on Cermic Road in Chicago is supposed to safeguard U.S Markets standing at all hours in case disaster ever strikes the world's largest venue for trading shares. So apparently an issue in their backup systems supposed to stop things from going haywire, but it caused things to go.

Haywire I'm sure you understand when markets are closed, it participate. paste in a well-worn routine with New York Stock Exchange staffers turning on and off systems to ensure everything works, but heading into Tuesday a New York Stock Exchange employee failed to properly shut down the disaster recovery system leading to a disaster. The human error is what triggered wild Market swings when training open. Tuesday Morning in Manhattan The chaos affected more than 250 companies, in some cases sending stock prices swinging by 25 percentage points in a matter of minutes actually seconds.

The episode has prompted The Exchange to cancel thousands of Trades at a cost that's still being determined. So this is a process referred to as busting trade. So the things that were bought and sold, any trades made in that window, they're just they're canceled and the New York Stock Exchange is going to have to pay for that. Meanwhile, Market Professionals and Day Traders are rattled and waiting for the exchange to elaborate on what it publicly called a manual error involving its Disaster Recovery configuration.

They're going to need to come up with something better. Those systems fail and we understand that there's zero tolerance when it comes to opening and the close. The turmoil resulted because the backup system was left running this Medla exchanges computers to treat the 9 30 am opening bell as a continuation of trading and so they skipped the day's opening auctions that neatly sets up initial prices. So to make that make a little bit more sense, there is something special about the opening.

It's literally referred to as the open auction, but this time it was treated as a just a continuation. like almost like pick a random midday minute in the trading Market to the next minute. So it thought that the new prices were like a jump in the normal day and it prompted all these circuit breaker halt when in reality it wasn't treating in like the open auction that it should have without That routine step order flowed through at prices all over the place that soon tripped circuit breakers designed to prevent violent Market swings, setting off alarms on screens across the investing world. And here's what Bloomberg has to say about it in terms of the New York Stock Exchange trading snafu from a couple days ago Bloomberg has learned that the NYSC the the Mayhem there has been traced now to an employee who left a backup system running.

That mistake triggered wild Market swings involving more than 250 companies. Bloomberg's Dannyberger joins us now with the latest on how the disaster recovery system caused a disaster itself. Danny That is really some good irony. Um, look, this is a fantastic scoop here from Catherine Doherty and the rest of the team in New York And and essentially there is this system.

as you say, it's in Chicago and it should be shut off and turned back on. For whatever reason, an employee there didn't properly turn it off. Turn it off and on again, please. Some things that trading has just been running, so come 9, 30.

it just treats it like an extension of the trading day. Instead of saying okay, trading is just about to start, we do the morning auction. Therefore, that morning auction simply does not happen. What does that mean? It means that this usually huge upswell of liquidity that happens that morning auction isn't there.

So anyone placing orders during this time is trading into a really illiquid Market. It means that even if you just trade, let's say 500 shares, it can mean that prices swing really wildly and ultimately the result is you perhaps lost. or I mean even made a lot of money I mean Donnie What happens next on this one then? because I mean we've seen a number of more than 1 300 trades and some 84 stocks were impacted. Some of that's being canceled It it certainly is.

And and there might be some Financial repercussions of this as well. For the Nic they do set aside five hundred thousand dollars per month to deal with different issues. I mean not this one specifically I Think this is one they probably didn't exactly see coming. but yeah, so they'll probably cancel some trades.

But for the rest of us who have lost money and didn't have their trades canceled, they have filed some complaints. Again, it's not really clear how much money the nicely will owe even Schwab criticized them too. They of course handle retail trades, saying that they are concerned that individuals might not get a fair Shake in the outcome of all this. So overall, as of now they're calling it human error.

You might think that's us. You might not think it's us I Personally do the one thing I want to add on to all of this is we know all the halts came at 9, 30, and 15 seconds. You might be wondering why that? Why is that when that all happened? Well, if you look at the limit up, limit down rules on the New York Stock Exchange Whenever it moves too much too rapidly in too short of a time, it has to stay above the price or below that price like those bands that move with it for volatility for 15 seconds. So basically at Market open, it was already there.

and then as soon as that 15 second timer went off because it was outside of those volatility bands. That's exactly when we saw roughly 80 different equities circuit breaker hall. and then that was the prompting of all this pandemonium that we're seeing now. So the biggest update we're getting on on it is human error at the New York Stock Exchange It was their their zastory recovery system that actually led to a disaster and right now it looks like they're going to end up busting quite a few trades.

they just mentioned that it was. there was over 1 100 trades I Don't know how many of them are going to be busted, but it looks like the NYSE is going to be on the hook for paying whatever damages are involved in this obviously absolutely crazy story. This is not something you see on a common basis whatsoever in the world of stocks. I Would love to get your thoughts.

Let me know in a comment below.