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Major system glitch hits Tokyo Stock Exchange, brokerage transactions restored

Earlier today, the Tokyo Stock Exchange was hit with a major computer glitch that temporarily shut down its trading system, affecting several brokerages. The glitch impacted a line linking these brokerages to the bourse's trading system for accepting orders.

Japan’s biggest stock exchange managed to restore trading by using backup lines while normal transactions are expected to resume on Wednesday. However, big brokerages including Nomura Securities Co., SMBC Nikko Securities, and Daiwa Securities Co. halted the processing of orders altogether because the glitch went out of control. Nomura Securities, meanwhile, started accepting orders back from customers Tuesday afternoon.

TSE did not specifically mention whether it would compensate the impacted brokerages who were able to go on trading despite the glitch by resorting to working lines. An official from one of the affected brokerages had this to say:

"We cannot deny the possibility that (the system failure) affected our customers through the loss of opportunity for equity transactions."

The stock exchange detected the glitch in the system designed to take buy and sell orders of stocks, exchange-traded funds, real estate investments trusts, and convertible bonds, according to The Mainichi. The glitch highlights the far-reaching impact of large volumes of data transmitted by brokerages on a stock exchange's trading system.

Source: The Mainichi | Image via Wikimedia Commons

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