Computerized trading problems aren't unique to the United States apparently. The main stock market in Spain was halted Monday for nearly 5 hours due to a "technical glitch," according to the index operator.
The IBEX 35 was offline from 10:05 a.m. to 2:50 p.m. local time, a spokesman for the Bolsas y Mercados Españoles said. The index rallied after trading resumed, gaining 2.8%. The spokesman said he did not yet know what caused the outage, but indicated that a statement would be issued once the source was fully uncovered.
Spain has been at the center of market concerns since June, when the government asked its fellow euro area nations for help bailing out its banks. But yields on Spanish government bonds, particularly shorter-dated maturities, were lower Monday as investors took a positive view of last week's announcement by the European Central Bank.
The market malfunction in Spain comes on the heels of a technical glitch in the U.S. that revived concerns about the dangers of high-frequency trading.
On Aug 1, a trading algorithm operated by Knight Capital Group (KCG) launched a flurry of errant trades in shares of some 150 U.S.-listed companies. The brokerage firm later reported a $440 million loss related to the foul-up.
Knight announced Monday that it had secured a $400 million lifeline from a group of investors including TD Ameritrade (AMTD), Blackstone Group (BX), Getco, Stifel Nicolaus (SF), Jefferies Group (JEF) and Stephens Inc. Despite the news, shares of Knight were down 25%, following volatile swings last week.
-- CNNMoney's Jose Pagliery contributed reporting.
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