Trading resumes in OTC stocks after 3-1/2-hour hal
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Trading resumes in OTC stocks after 3-1/2-hour halt
NEW YORK |
(Reuters) - Trading resumed on Thursday afternoon on nearly 10,000 over-the-counter equities after a 3-1/2-hour halt on all OTC Markets Group platforms triggered by a connectivity issue.
The Financial Industry Regulatory Authority halted trading in all OTC Equity Securities at 11:25 a.m. EST (1625 GMT) "to protect investors and ensure a fair and orderly marketplace," OTC Bulletin Board said on its web site. Trading resumed at 3 p.m. EST.
A connectivity issue was behind the halt, said an OTC Markets Group spokeswoman. It did not give details but scheduled a call for the media at 4:15 p.m. EST to discuss the issue,
Trading in Nasdaq - and New York Stock exchange-listed securities was not affected.
Issues halted included about 1,400 American Depositary Receipts and 1,400 foreign ordinaries. Roughly $8 of every $10 traded in OTC exchanges are in ADRs and ordinary shares of international exchange-listed companies, according to data from OTC Markets' website.
Many securities on the over-the-counter market are illiquid, trading infrequently, with prices usually less than $1.
A raft of technical glitches has affected U.S. equity markets in recent years. In August, there was a three-hour halt in all Nasdaq-listed stocks and an issue at CBOE that suspended options trading in major U.S. options contracts that same month. In 2012, there was a trading error that cost Knight Capital Group $461 million and led to the sale of the firm, now part of KCG Holdings.
(Reporting by Rodrigo Campos and John McCrank; Editing by Chizu Nomiyama and David Gregorio)
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