Trading disrupted as outage hits banks and brokers
JPMorgan, UBS and Bloomberg among companies affected
On Friday, a global IT outage impacted major banks, brokers, and financial technology firms, including JPMorgan Chase, UBS, and Bloomberg, leaving some traders unable to access their systems for trade execution. JPMorgan's trading execution platforms were specifically affected, while UBS and fintech firm ION Group encountered similar issues that morning, according to sources familiar with the situation. Additionally, some Bloomberg Terminal users experienced disruptions prior to the opening of the UK market. Broker CMC Markets reported problems that were "currently impacting access to our trading platforms." Bloomberg noted that "some clients experienced interruptions while using the Bloomberg Terminal and other services due to a third-party outage," although their trading venues continued to operate normally. Both JPMorgan, UBS, and ION Group opted not to comment on the matter.
"It's chaotic," remarked a senior trader at an asset management firm. "This is the biggest disruption we've seen in years." While key trading venues remained operational, the technical difficulties at various banks and brokers hindered traders’ access to necessary systems, complicating the finalization of trades. Some brokers had to instruct clients to direct their orders to other platforms, according to two traders. The disruptions coincided with a worldwide outage attributed to a software security update from US-based CrowdStrike, which caused issues with Microsoft systems. Sources indicated that UBS's problems were linked to outdated systems acquired in its Credit Suisse takeover, but were resolved by early afternoon in Europe.
The London Stock Exchange Group reported that trading was functioning normally, but its news service struggled, publishing only a limited number of news releases on Friday morning. LSEG acknowledged it was facing "a third-party technical issue impacting some of our services," but later confirmed that the news service had been restored. Notably, LSEG collaborates closely with Microsoft, which acquired a 4% stake and a board seat in the company in 2022. Other trading venues such as Nasdaq, Euronext, Deutsche Börse, CBOE, and Tradeweb reported they were not affected by the outage.
"The ability to trade exists, but there’s limited potential unless it’s absolutely critical," the senior trader added. "Traders must be assured that the data they rely on is accurate." In response to the outage, the UK's Financial Conduct Authority, the Payments Systems Regulator, and trade body UK Finance stated they were in contact with financial services firms to assess the situation's impact. Following the news, shares of CrowdStrike fell sharply by 12% in pre-market trading, while Microsoft saw a 1.5% dip. Despite the chaos, there were no significant signs of broader market repercussions, with the Stoxx Europe 600 declining by 0.6% and S&P 500 futures remaining flat.
"It's chaotic," remarked a senior trader at an asset management firm. "This is the biggest disruption we've seen in years." While key trading venues remained operational, the technical difficulties at various banks and brokers hindered traders’ access to necessary systems, complicating the finalization of trades. Some brokers had to instruct clients to direct their orders to other platforms, according to two traders. The disruptions coincided with a worldwide outage attributed to a software security update from US-based CrowdStrike, which caused issues with Microsoft systems. Sources indicated that UBS's problems were linked to outdated systems acquired in its Credit Suisse takeover, but were resolved by early afternoon in Europe.
The London Stock Exchange Group reported that trading was functioning normally, but its news service struggled, publishing only a limited number of news releases on Friday morning. LSEG acknowledged it was facing "a third-party technical issue impacting some of our services," but later confirmed that the news service had been restored. Notably, LSEG collaborates closely with Microsoft, which acquired a 4% stake and a board seat in the company in 2022. Other trading venues such as Nasdaq, Euronext, Deutsche Börse, CBOE, and Tradeweb reported they were not affected by the outage.
"The ability to trade exists, but there’s limited potential unless it’s absolutely critical," the senior trader added. "Traders must be assured that the data they rely on is accurate." In response to the outage, the UK's Financial Conduct Authority, the Payments Systems Regulator, and trade body UK Finance stated they were in contact with financial services firms to assess the situation's impact. Following the news, shares of CrowdStrike fell sharply by 12% in pre-market trading, while Microsoft saw a 1.5% dip. Despite the chaos, there were no significant signs of broader market repercussions, with the Stoxx Europe 600 declining by 0.6% and S&P 500 futures remaining flat.