The Buzz

All markets and investing news all the time

The latest trading glitch: Kraft

October 3, 2012: 3:17 PM ET

Kraft's shares rose nearly 29% immediately after the opening bell.

Another week: another bizarre trading glitch. This time around, Kraft's stock whipsawed in the first 60 seconds of the trading day.

After closing at $45.48 Tuesday, shares of Kraft (KRFT) spiked nearly 29% in the first minute of trading Wednesday, to $58.54. By 10:32 a.m. ET, Nasdaq, NYSE Arca and BATS cancelled all trades in Kraft that came in at or above $47.82, according to spokespersons at both exchanges.

Under Securities and Exchange Commission rules, exchanges can quickly cancel trades that are "clearly erroneous."

The bizarre trades came one day after Kraft officially started trading separately from Mondelez (MDLZ), Kraft's former snack business that includes Oreos, Cadbury chocolates and Nabisco. Kraft Foods now runs the grocery business, which includes Kraft cheese and salad dressing brands, as well Maxwell House Coffee, Philadelphia Cream Cheese and Miracle Whip.

A source close to the situation said that the erroneous order was placed by a single trading firm. Several market watchers said a trader or computer program may have simply placed an incorrect order price by mistake since Kraft and Mondelez only started trading separately yesterday.

Related: Irene Rosenfeld: Breaking up is hard to do

While the problems from this glitch appear to have been fixed quickly, Nasdaq is once again playing a lead role in a trading issue. Kraft switched its listing from the New York Stock Exchange to the Nasdaq (NDAQ) in June. At the time, it appeared to be a big win for Nasdaq to gain what was then a Dow component in the wake of the Facebook IPO debacle. (UnitedHealth (UHC) bumped the new, smaller Kraft from the Dow in September).

Kraft's stock traded up roughly 2.51% by mid-afternoon Wednesday. Mondelez's shares dipped slightly.

Join the Conversation
Fear & Greed
Sponsored by
About This Author
Maureen Farrell
Maureen Farrell
Staff writer, CNNMoney

Maureen Farrell is a staff writer at CNNMoney and covers Wall Street, banking, mergers and the stock and bond markets. Prior to joining CNNMoney, she covered venture capital and entrepreneurs for Forbes, and mergers and bankruptcy for Mergermarket and Debtwire, both divisions of the Financial Times.

To view my watchlist

Not a member yet?

Sign up now for a free account
Stupid Stock Move of the Day
#StupidStock Move of the Day! $CVC up 3.5% on telco REIT hype? I get that $WIN spin news is boosting $FTR $CTL $T $VZ. But Cablevision too?
Powered by WordPress.com VIP.