ArrowArtboardCreated with Sketch.Title ChevronTitle ChevronIcon FacebookIcon LinkedinIcon Mail ContactPath LayerIcon MailPositive ArrowIcon Print

Login glitch behind Tokyo Stock Exchange snafu

High-frequency trader connecting via Merrill Lynch apparently unleashed data flood

Tokyo Stock Exchange operator Japan Exchange Group scrambled to deal with a technical malfunction Tuesday morning. (Photo by Toshiki Sasazu)

TOKYO -- The technical failure that interfered with trading on the Tokyo Stock Exchange on Tuesday stemmed from an error in a high-frequency trader's systems and exposed the relative fragility of Japan's stock market infrastructure.

The problem was first spotted by the exchange's systems department around 7:30 Tuesday morning. A large volume of messages -- data swapped between systems when logging in or placing orders, for example -- flooded onto one of the four connections linking brokerages' ordering systems with the bourse's trading servers, sparking fears of cyberterrorism.

Sponsored Content

About Sponsored Content This content was commissioned by Nikkei's Global Business Bureau.

Nikkei Asian Review, now known as Nikkei Asia, will be the voice of the Asian Century.

Celebrate our next chapter
Free access for everyone - Sep. 30

Find out more