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Trades in bankrupt Exodus cause false Nasdaq jump
September 28, 2001 11:05 AM ET
NEW YORK, Sept 28 (Reuters) - The sharp rise in the Nasdaq composite index around 10 a.m. was caused by a faulty trade in bankrupt Web hosting company Exodus Communications Inc. (EXDS), the Nasdaq said on Friday.
As a result of the trade, which was entered into the Nasdaq's systems at $100 per share, the composite jumped to a 4 percent gain. Shortly after the index peaked, it fell back to a 2 percent rise after the trade was canceled, a Nasdaq spokeswoman said.
Shares of Exodus, which filed for Chapter 11 bankruptcy on Wednesday, last traded at 17 cents.
In February, a handful of erroneous trades caused the Nasdaq composite to falsely spike up 14 percent.
Some traders said automatic buy programs had been triggered at around the time of the spike in the composite, also contributing to the gain. REUTERS REUTERS
September 28, 2001 11:05 AM ET
NEW YORK, Sept 28 (Reuters) - The sharp rise in the Nasdaq composite index around 10 a.m. was caused by a faulty trade in bankrupt Web hosting company Exodus Communications Inc. (EXDS), the Nasdaq said on Friday.
As a result of the trade, which was entered into the Nasdaq's systems at $100 per share, the composite jumped to a 4 percent gain. Shortly after the index peaked, it fell back to a 2 percent rise after the trade was canceled, a Nasdaq spokeswoman said.
Shares of Exodus, which filed for Chapter 11 bankruptcy on Wednesday, last traded at 17 cents.
In February, a handful of erroneous trades caused the Nasdaq composite to falsely spike up 14 percent.
Some traders said automatic buy programs had been triggered at around the time of the spike in the composite, also contributing to the gain. REUTERS REUTERS
