Produced by Alessia Giustiniano. Filmed by Petros Gioumpasis.
A big shock for some investors overnight when they found some of the biggest names in the US, such as Apple, Amazon, and Google, all of a sudden they had their prices slashed. So what happened?
Every day, exchanges send out their data feeds in slightly different languages for every different exchange. A data vendor would typically take all of these different languages and put it together, scrub it, and make it into something a little bit more palatable to the outside world. Then they can repackage that data and sell it on to the average investor. And to their own users.
Somewhere in the middle, something has gone very wrong. Now we're still trying to find exactly what's happened here. But we think it's related to the July the 4th holiday where the data that was sent over from NASDAQ as a test accidentally made its way onto the screens such as Thomson Reuters here or the Bloomberg terminal.
Now it turns out that there weren't any trades off this, so the data has been scrubbed. But for some investors waking up to find that Amazon was maybe down 90% from its normal price, was a bit of a shock.
It's quite common for changes to be made but quite [? wide ?] something that happens quite normally for most trading days of the year for three very experienced market operators in NASDAQ, Bloomberg, and Thomson Reuters.
And why it should change this time around, nobody is quite sure. Things were a lot quieter than normal. It is US Independence Day and NASDAQ only had a half day. Perhaps somebody got confused here. Amid all the finger pointing, it's also likely that US regulators will take a look first thing on Wednesday when the markets reopen after all the fireworks.