SEC chair meets with stock exchange heads to discuss Nasdaq glitch

BY newsdesk  September 12, 2013 at 11:34 AM EST

Photo: Flickr user bfishadow.

Security and Exchange Commission chair Mary Jo White met with the heads of the major U.S. stock exchanges Thursday morning, to discuss an Aug. 22 incident that halted NASDAQ trading.

The Associated Press reported that the exchange was halted for three hours due to a technical glitch. An issue with Nasdaq’s public data network, known as the Securities Information Processor caused the shutdown and was the impetus for Thursday’s meeting.

The SEC wants to see “better protocols for testing and backing up systems,” CNBC’s Bob Pisani writes.

While the Aug. 22 glitch did not result in any substantial losses to stock prices, the Nasdaq could face significant financial penalties and other sanctions.

It’s pretty significant for an exchange to be shut down this long,” Phil Stern, a former SEC attorney for 10 years, said to the AP. “The disruption to the marketplace is huge.”