Earlier today, the Tokyo Stock Exchange suffered a major computer failure and temporarily closed its trading system, affecting several brokerage firms. These failures affect the lines that accept orders between these brokers and the exchange trading system.
Japan’s largest stock exchange managed to resume trading by using alternate lines, while regular trading is expected to return on Wednesday. However, large brokerage firms including Nomura Securities, SMBC Nikko Securities and Daiwa Securities have entirely stopped order processing because the fault has gone out of control. At the same time, Nomura Securities resumed accepting orders from customers on Tuesday afternoon.
The Tokyo Stock Exchange did not specifically mention whether it would compensate brokers whose transactions were affected. An official of an affected brokerage firm said that they could not deny the possibility that system failure would change customers by losing equity trading opportunities.
According to The Mainichi, the stock exchange detected a system failure, which was designed to accept orders for stocks, trades, exchange-traded funds, real estate investment trusts and convertible bonds. This failure highlights the problems and risks that brokers may have to transmit large amounts of data in the stock exchange trading system.