Incident: Market Data System Glitch at Shanghai Stock Exchange Impacts Investors

Published Date: 2022-11-09

Postmortem Analysis
Timeline 1. The software failure incident at the Shanghai Stock Exchange (SSE) happened on the day the article was published, which is November 9, 2022 [136093].
System The software failure incident at the Shanghai Stock Exchange was attributed to a glitch in the "Level-2" market data system provided by SSE InfoNet Ltd. The traditional "Level-1" system was not affected by this glitch [136093]. Therefore, the system that failed in this incident was: 1. "Level-2" market data system [136093].
Responsible Organization 1. The software failure incident at the Shanghai Stock Exchange was caused by a temporary glitch in the market data system provided by SSE InfoNet Ltd [136093].
Impacted Organization 1. Investors using various stock trading platforms experienced abnormal data and platform crashes, affecting their investments [136093].
Software Causes 1. The software cause of the failure incident at the Shanghai Stock Exchange (SSE) was a temporary glitch in the market data system, leading to abnormal data being supplied to information providers [136093].
Non-software Causes 1. The fat-finger incident in China's financial futures market where a CSI 1000 stock index futures contract maturing in November plunged 10% at open due to one customer's unfamiliarity with their trading software [136093].
Impacts 1. Abnormal data was supplied to information providers, affecting investors' decisions and investments [136093]. 2. Trading platforms crashed or showed abnormal market data, leading to complaints from investors about losses caused by the breakdown [136093]. 3. Some investors experienced failures in recalling their orders, indicating potential financial losses [136093].
Preventions 1. Implementing thorough testing procedures before deploying any updates or changes to the market data system could have potentially prevented the software failure incident [136093]. 2. Providing adequate training and support to users of the trading software to prevent errors or fat-finger incidents that could lead to market disruptions [136093].
Fixes 1. Implementing more robust testing procedures to catch potential glitches before they impact users [136093]. 2. Providing better user training and support to prevent incidents like the fat-finger error in the financial futures market [136093].
References 1. Shanghai Stock Exchange (SSE) unit 2. SSE InfoNet Ltd 3. Investors on social media platforms like Weibo 4. China Financial Futures Exchange 5. Reporting by Jason Xue and Brenda Goh [136093]

Software Taxonomy of Faults

Category Option Rationale
Recurring one_organization (a) The software failure incident having happened again at one_organization: The article mentions that the technical glitch at the Shanghai Stock Exchange (SSE) occurred a day after a fat-finger incident in China's financial futures market, where a stock index futures contract plunged 10% due to a customer's unfamiliarity with their trading software [136093]. (b) The software failure incident having happened again at multiple_organization: There is no specific mention in the provided article about similar incidents happening at other organizations or with their products and services.
Phase (Design/Operation) operation (a) The software failure incident mentioned in the article is related to the operation phase. The glitch in the market data system led to abnormal data being supplied to information providers, affecting investors' trading platforms and causing complaints about losses [136093]. (b) Additionally, there was a fat-finger incident in China's financial futures market where a stock index futures contract plunged 10% at open due to a customer's unfamiliarity with their trading software, indicating a failure related to the operation phase [136093].
Boundary (Internal/External) within_system (a) The software failure incident reported in Article 136093 was within the system. The glitch in the market data system of the Shanghai Stock Exchange (SSE) unit led to abnormal data being supplied to information providers, affecting investors' trading platforms and causing complaints about losses [136093]. The incident was attributed to a technical issue within the Level-2 market data system, prompting the switch to an emergency backup system to restore normal services before afternoon trading [136093].
Nature (Human/Non-human) non-human_actions, human_actions (a) The software failure incident in this case was attributed to a temporary glitch in the market data system at the Shanghai Stock Exchange (SSE) unit, which led to abnormal data being supplied to information providers [136093]. This glitch was detected by the "Level-2" market data system, triggering a switch to an emergency backup system to restore normal service. The incident affected various stock trading platforms, causing disruptions for investors and leading to complaints about abnormal market data and trading platform crashes. The article does not mention any specific human actions contributing to this software failure incident. (b) The article mentions a separate incident involving a fat-finger error in China's financial futures market, where a CSI 1000 stock index futures contract maturing in November plunged 10% at open due to one customer's unfamiliarity with their trading software [136093]. This incident was attributed to human error rather than a system glitch or technical failure.
Dimension (Hardware/Software) software (a) The software failure incident reported in Article 136093 was not attributed to hardware issues. The incident was described as a temporary glitch in a market data system provided by a Shanghai Stock Exchange (SSE) unit. The abnormal data supplied to information providers and the subsequent impact on investors' trading platforms were due to a technical issue within the software system itself, specifically the "Level-2" market data system. The article does not mention any hardware-related contributing factors to the failure incident [136093]. (b) The software failure incident in Article 136093 was primarily attributed to contributing factors originating in the software. The glitch in the market data system, which led to abnormal data being supplied to information providers and impacted investors' trading platforms, was a result of a technical issue within the software system. The incident was specifically related to the "Level-2" market data system provided by the SSE unit, indicating a software-related failure rather than a hardware-related one [136093].
Objective (Malicious/Non-malicious) non-malicious (a) The software failure incident reported in the article is non-malicious. It was described as a temporary glitch in the market data system of the Shanghai Stock Exchange (SSE) unit, which led to abnormal data being supplied to information providers. The incident was attributed to a technical issue in the "Level-2" market data system, which prompted the company to switch to an emergency backup system to restore normal services. Investors experienced issues with their trading platforms and complained about losses caused by the breakdown, indicating that the failure was not intentional but rather a result of a technical malfunction [136093].
Intent (Poor/Accidental Decisions) accidental_decisions (a) The software failure incident mentioned in the articles does not seem to be related to poor decisions. Instead, it was attributed to a temporary glitch in the market data system of the Shanghai Stock Exchange (SSE) unit, which led to abnormal data being supplied to information providers [136093]. The incident was described as a technical glitch that affected investors' trading platforms and caused complaints about losses. Additionally, a fat-finger incident in China's financial futures market was mentioned, where a significant drop in a stock index futures contract was attributed to a customer's unfamiliarity with their trading software, indicating accidental decisions rather than poor decisions.
Capability (Incompetence/Accidental) accidental (a) The software failure incident related to development incompetence is not explicitly mentioned in the provided article. Therefore, it is unknown if the incident was caused by factors introduced due to lack of professional competence by humans or the development organization. (b) The software failure incident related to an accidental factor is mentioned in the article. The article reports a fat-finger incident in China's financial futures market where a stock index futures contract plunged 10% at open due to one customer's unfamiliarity with their trading software. This incident can be categorized as a failure due to contributing factors introduced accidentally [136093].
Duration temporary The software failure incident reported in Article 136093 was temporary. The article mentions that a market data system at the Shanghai Stock Exchange experienced a temporary glitch that led to abnormal data being supplied to information providers. The abnormal data affected investors in the early trading session, but the system was able to resume normal service after switching to an emergency backup system before afternoon trading [136093].
Behaviour crash (a) crash: The software failure incident mentioned in the article is related to a crash. The Shanghai Stock Exchange (SSE) unit experienced a temporary glitch in its market data system, leading to abnormal data being supplied to information providers. This glitch caused trading platforms to crash or show abnormal market data for investors, affecting their investments [136093]. (b) omission: There is no specific mention of the software failure incident being related to omission in the articles. (c) timing: The incident is not described as a timing failure where the system performed its intended functions but at the wrong time. (d) value: The software failure incident is not attributed to the system performing its intended functions incorrectly. (e) byzantine: The incident does not involve the system behaving erroneously with inconsistent responses and interactions. (f) other: The behavior of the software failure incident in this case is primarily characterized as a crash, where the system lost state and did not perform its intended functions, leading to abnormal data being supplied and affecting investors' trading platforms [136093].

IoT System Layer

Layer Option Rationale
Perception None None
Communication None None
Application None None

Other Details

Category Option Rationale
Consequence property (d) property: People's material goods, money, or data was impacted due to the software failure In the reported software failure incident at the Shanghai Stock Exchange, investors complained about abnormal data on various stock trading platforms, which affected their investments. Many investors reported that their trading platforms crashed or showed abnormal market data in the morning, leading to complaints about losses caused by the breakdown. One user on the Weibo social media platform mentioned, "Indeed, I realized there was a problem after several times of failure to recall my order" [136093].
Domain finance (a) The failed system was related to the finance industry as it affected the Shanghai Stock Exchange (SSE) and investors' trading platforms [136093]. The glitch impacted the market data system, leading to abnormal data being supplied to information providers, affecting investors' decisions and causing complaints about losses [136093]. (h) The incident specifically affected the financial futures market in China, as mentioned in the article. A fat-finger incident in China's financial futures market occurred the day before the technical glitch in the market data system. This incident involved a CSI 1000 stock index futures contract maturing in November plunging 10% at open due to a customer's unfamiliarity with their trading software [136093].

Sources

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