Nasdaq Cancels Late Google Trades
October 2nd, 2008Via: Mercury News:
Erroneous trades sent to the Nasdaq Stock Market by another exchange caused Google’s share price to gyrate wildly Tuesday afternoon, soaring as high as $485.13 and falling as low as $25.80.
The Nasdaq issued a statement Tuesday afternoon saying that all trades in Google’s shares made at or above $425.29 and at or below $400.52 between 3:57 and 4:02 p.m. would be canceled. The statement said Google’s official closing price would be adjusted to $400.52, an increase of 5 percent over the previous day.
In a message board on the NasdaqTrader Web site, the exchange said it was also adjusting the closing value of the Nasdaq 100 Index from 1,584.60 to 1,594.63. It said other indexes would also be changed to reflect Google’s revised closing price. Last-minute trades in Rohm Hass, a chemical maker, were also canceled.
The exchange declined to provide further details. Google declined to comment.
The Nasdaq has periodically been forced to cancel erroneous trades caused by computer glitches. In March 2007, the Nasdaq Composite Index leaped more than 7 percent after shares in the Donegal Group, an insurer that is a component of the index, appeared to soar 11,000 percent. Those trades were also canceled.
The volume of trading in Google was unusually high Tuesday, with 9.6 million shares changing hands, compared with an average daily volume of 4.7 million.
