Wednesday, October 1, 2008

Erroneous Transactions in Google Shares

Nasdaq's surveillance arm stated in a statement that there were potentially erroneous transactions in Google shares.

According to a report, the Nasdaq Stock Market will cancel some of the late trades in Google Inc (GOOG.O), whose shares appeared to plunge as low as 1 cent at the close of North American markets on Tuesday.

Earlier, Nasdaq's surveillance arm stated in a statement it was investigating "potentially erroneous transactions" in Google shares. However, a Google spokesperson stated that the company refused to comment on the trading spike.

A spokesperson for exchange parent Nasdaq OMX Group (NDAQ.O) told that the "erroneous orders" that caused the abrupt plunge "were triggered by orders routed from another exchange." She did not mention which exchange routed the trade orders. However, she said that the decision to cancel trades could not be appealed.

According to Nasdaq, transactions at or above $425.29 and at or below $400.52, that were executed between 3:57 p.m. and 4:02 p.m. EST, would be removed. The exchange set Google's closing price at $400.52, up 5.12%. In addition, canceling trades is embarrassing and rare for exchanges, which some say are more susceptible to problems as they become electronic. Nasdaq is an all-electronic venue.

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