Last week Wall Street saw sudden and unexpected volatility as the result of a glitch in the computer of market-maker Knight Capital. The company that is now fighting for its life following a $440 million loss in mere minutes after a technical malfunction caused erroneous stock purchases. On Monday, technological errors in Tokyo brought the bourse to an abrupt standstill, halting all trading of derivatives and options temporarily until the problem was resolved.
It was also announced on Monday that the Securities and Exchange Commission is investigating the operations of some New York Stock Exchange data feeds to determine whether some subscribing traders have received proprietary information prematurely. The company in question is NYSE Euronext Inc., which maintains that it is working closely with the SEC to find the answers to the body’s claims.
The global technological troubles have been coupled with political volatility, contributing directly to a rocky trading day during Tuesday’s Asian session.
The MSCI Asia Pacific Index (MSAP) rose to 119.27 as of 10:13am Tokyo time, while the Nikkei 225 Stock Average (NKY) rose 0.2 percent. According to Bloomberg, the regional benchmark traded at 12.2 times its estimated earnings, while the S&P 500 traded at 13.5 times its estimated earnings. The euro rallied above $1.24 and hit its highest point in over a month due to rising optimism about a potential relief plan from the ECB.