Hardware issue behind market outage, SGX waiving buy-in penalty for short positions: CEO Loh Boon Chye

SGX chief executive Loh Boon Chye revealed that the outage that shut down stock trading at the Singapore Exchange resulted from a hardware issue in the systems provided by Nasdaq.
SGX chief executive Loh Boon Chye revealed that the outage that shut down stock trading at the Singapore Exchange resulted from a hardware issue in the systems provided by Nasdaq.PHOTO: REUTERS

SINGAPORE - The outage that shut down stock trading at the Singapore Exchange on Thursday resulted from a hardware issue affecting the systems provided by Nasdaq, SGX chief executive Loh Boon Chye revealed in a conference call on Friday (July 15).

Mr Loh also said that SGX will waive the buy-in penalty for investors who held open short positions on Thursday, adding that the amount of short selling was "insignificant".

The market has reopened and is functioning properly, stressed Mr Loh, though he added that SGX could have handled the recovery better.

The glitch led to duplicate and missing trade confirmation messages and SGX had to halt trading for member broker firms to reconcile the messages, said Mr Loh.

 

And while the time taken to resolve the issue was far longer than expected, this was needed to ensure a fair and orderly market, said Mr Loh, who issued an apology to the public.

But little new information emerged fro m the briefing, as Mr Loh was tight-lipped on what exactly caused the outage - aside from saying that it was a hardware issue - even as reporters peppered him with questions on the root of the problem.

Nor was he willing to point fingers at any employee, stressing that the whole SGX is responsible for the blunder.

As the briefing unfolded, SGX shares moved lower, erasing early gains. At 12.30pm the counter ws down 0.51 per cent to S$7.75.