The Day The Markets Died

Just after lunch time today the markets died. They stopped breathing. The are no longer

with us.

Dozens of publicly traded companies, including high-profile companies such as Apple, Microsoft and Facebook, were showing their shares halted. The Nasdaq status message was time stamped at 12:14:03 ET.

Dow Jones reported at 1:06 pm ET that trading would resume "shortly," though the exact timing was not clear.

Does it matter now? The flash crash? All the hurdles the markets have given us through the years. Why do we trust this market anymore?

All Nasdaq markets halting trading due to processor issue
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Published: Thursday, 22 Aug 2013 | 1:13 PM ET
By: Matt Hunter, News Editor

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Jin Lee | Bloomberg | Getty Images
Nasdaq halted trading in all securities Thursday until further notice due to a problem affecting quote dissemination.
Dozens of publicly traded companies, including high-profile companies such as Apple, Microsoft and Facebook, were showing their shares halted. The Nasdaq status message was time stamped at 12:14:03 ET.

Dow Jones reported at 1:06 pm ET that trading would resume "shortly," though the exact timing was not clear.
A spokesman for the exchange said: "Nasdaq will not be canceling open orders on the book. Customers who wish to cancel their orders may do so and any customer who wishes to not participate in the re-opening should cancel their orders prior to the resumption of trading. Additionally, Nasdaq will clear all stale quotes from the UTP SIP prior to the commencement of trading."
A spokesman for the SEC said, "We are monitoring the situation and are in close contact with the exchanges."
The Nasdaq options markets also issued a "system update" saying they were recommending firms route all open orders elsewhere.

Play Video
Nasdaq: Halts trading in all tape C securities
CNBC's Bob Pisani and Bertha Coombs report the Nasdaq has halted trading in options market as of 12:20p.
The New York Stock Exchange said it had halted trading in all Nasdaq securities at its request and was cancelling orders. The NYSE otherwise declined comment.

(Read more: 'Knight-mare': Trading Glitches May Just Get Worse)

"You can't trade if you can't get the quotes out," said Rich Repetto of Sandler O'Neill Partners.

"They want everybody else to shut down Tape C trading so they can restart over at the Nasdaq and until they do they can't restart", said CNBC contributor Pete Najarian. Tape C refer to any securities traded over the Nasdaq.

"When everyone comes back online at the same time that's when even more dangerous things can happen in the marketplace," said Sal Arnuk, the co-founder of Themis Trading.
"If I was back in the days of 10 years ago managing 300 traders I'd put the directive out to every one of them 'we don't put any orders in at the open' ... no one trades for 60 minutes," said Joe Terranova, chief market strategist for Virtus Investment Partners and a CNBC contributor.

Profile photo of uranium-pinto-beansKnown to most as Uranium Pinto Beans, Jason has more than 15 years under his belt of trading stocks, options and currencies. His expertise primarily lies in chart analysis, and he has a strong eye for undervalued stock. Because he’s got the ability to identify great risk/reward trades he usually enjoys taking the path less traveled and reaping the benefits from the adventure.

He is a co-founder of Option Millionaires, and he is best known for his weekly webinars with Scott, as well as his high level training webinars and charts found in the forums.

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