What Happened At Tocom?

- Updated June 30, 2010

The Tokyo Commodity Exchange suspended trading last Tuesday for more than three hours due to connectivity issues. The shutdown came days after the exchange upgraded to a technology platform from Nasdaq OMX Group.

According to the Tokyo Commodity Exchange (Tocom), its shared network gateway began experiencing connectivity problems at 10:30 a.m. About one hour later, the venue halted all trading to switch off its router. Connectivity was restored at 2 p.m. and trading resumed at 3 p.m. for half an hour.

“Although the cause of the problem remains unidentified, system connectivity is now restored to a normal condition,” announced Tocom, Japan’s largest commodity market.

“We will give further notice on the cause of the problem once it has been identified.”

“The incident at Tocom wasn’t caused or related to the trading systems that we provided,” said Nasdaq spokesman Carl Norell. There have been no similar outages with any other exchanges using the Nasdaq OMX platform, he said.

“This is just an old-fashioned software management issue that is hard to eliminate,” said Kevin McPartland, an analyst at New York-based Tabb Group.

“You can test and test and test, but it’s impossible to truly simulate a production environment.” McPartland said he doesn’t expect the problem to affect liquidity at the exchange. “But ultimately,” he added, “it’s not a good showing.”

Observers may imply that there is a connection between the outage and the Nasdaq platform, according to Bob McDowall, an analyst in TowerGroup. “But it’s hard to tell at this time.”

McDowall added that he has not heard of the Nasdaq system causing outages at other market centers.

Leave a comment

Your email address will not be published. Required fields are marked *

Current Projects

reseller seo