Issues with the Nasdaq FIX/RASH order handling system this week caused problems for some clients, particularly around unacknowledged orders and missing execution reports.
At around 2.31pm (Eastern time) on Wednesday (13 December), the Nasdaq FIX/RASH order handling system experienced an issue caused by a duplicate internal order ID – impacting subsequent order handling across Nasdaq, BX and PSX.
A further problem then also occurred at 3:51pm ET which caused a number of issues for customers using the FIX/RASH order entry protocols: including problems with unacknowledged orders, intermittent port disconnects and mismatched execution reports. Some clients did not receive execution reports on orders that were in fact filled, while some clients were unable to cancel open orders. More than 50 clients were affected.
Because the exchange was unable to fully resolve the issue prior to the end of day, the entire FIX/RASH order handling system was shut down after the close, blocking all new orders and cancelling any open orders back to customers. Some customers continued to see mismatches on executions while others still missed execution reports.
The exchange stated that: “It is important to note that the Nasdaq, BX, and PSX primary matching engines were unaffected by the issue and all trades matched by the trading systems were processes correctly, including executions occurring in the Nasdaq Closing Cross.”
Systems were back up and running by 8.26am on 14 December, when Nasdaq confirmed that all trades that needed to be reversed and resent in clearing for Nasdaq, BX and PSX had been completed.
“Nasdaq is confident that this corrective action fully addresses the issue,” said the firm in a statement.
The exchange will review the possibility of accommodation/compensation for affected clients who submit their intent to file by noon on 18 December. However, some market participants expressed disappointment with regards to the exchange’s handling of the issue.
“It only impacted a handful of our clients, but Nasdaq’s communication has been extremely poor,” said one broker, speaking on condition of anonymity.
Nasdaq declined to comment when contacted by BEST EXECUTION.
©Markets Media Europe 2023
