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It was a bad day to be BATS. Its trading platform experienced a blunder on Apple—the highest-profile company in the world—and forced BAT to withdraw its IPO on the stock's first day of trading.
Both the ramifications of the BATS exchange blunders weren't entirely clear on Friday, but the headline-grabbing events certainly can't have helped the company's image—or that of high frequency trading.
The first problem for BATS came at 10:57 am when 100 shares of Apple hit the tape at $542.80 — a price more than 9 percent off the $598.37 level where the tech titan was priced. Apple tradingwas halted for a few minutes, then resumed with little price disruption.
Meanwhile, shares in BATS itself, which trade on Nasdaq, were halted less than an hour later. The stock was already off 4.7 percent at $15.25.
Late Friday, BATS released a post-mortem about what exactly happened, blaming a software bug for the problems.
At 10:45 am, a "single match engine" that handles trading in stocks starting with symbols ranging from "A" to "BF" "encountered a software bug related to IPO auctions, which rendered open customer orders in this symbol range inaccessible," the company said.
That's why trading in shares of Apple also went haywire — its ticker symbol "AAPL," falls in that range.
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