crumpton. the new york stock exchange suspended trading in its issues. it does not affect trading on the arca or other exchanges. the trading in stock options continues as well as trading in futures. the new york stock exchange says there has been no evidence of a hack attack or cyber attack on any of the technology systems. i got byalso been law-enforcement officials as we heard from phil mattingly in washington. the fbi and the department of homeland security saying that there is no evidence of a breach of these internal systems mark: has julie hyman correctly pointed out, a small percentage of the overall trading volume of around 13%. a lot of people have been saying that this is a blip, that you did not see a panic as you, sam, and matt had pointed out here at stocks are trading and as joe,

who will be joining us in just a second, told us earlier, we are talking about 11 exchanges. as joe mentioned, and if you are there with us now, you mentioned, do we really need 11? maybe two or three would be fine. joe: i think some people would argue that fragmentation is a good thing. i would argue, no, the backups are good. you could have two or three and maybe four exchanges. certainly not 11. what that does is it creates unnecessary arbitrage amongst venues. it is not helping anybody. it is just sniffing off different destinations, about a penny or so. that is not what we need. we need people -- deeper pools of liquidity. secondly accomplished with three exchanges and maybe 10 or couple spirit you do not need what we have right now. and we still have redone since the death redundancy.

we stillt is the -- have redundancy. mark: what are you looking at? what happened, is it a hardware or software issue, is it due to something upgraded overnight. beall understand there will technical issues. there will always be an outage. there will always be something when you're dealing with this type of high-speed electronic training -- trading. the fcc put out earlier in the year, it forces exchanges to make sure they're having the proper plans in place. i think they probably did what they were supposed to do. in the end, you cannot prevent a failure, whether a circuit or gateway. things will happen and as investors, we need to understand your subject to these kinds of outages at any time, the china situation in the greece situation, whatever it may pay.

but you can still trade in that it's an important point. speak a little bit about the competition. will they take this as an opportunity for a little more business? not think so. they all have their own issues. the nasdaq a couple years back, they have had other flash freezes. just the other day, one of their exchanges had an outage for a half-hour to they all have issues. if they cut come out and say, we are better than the others, they are just in a glass house throwing stones. there is always going to be a problem and always a technical issue. for them to go out into that would be silly. mark: if i might ask, we have been hearing from phil mattingly in washington and on the folks we have spoken to on a phone, that it appears there was an internal technical glitch, something happening even before they open today. they have been working on it and that trading had been suspended in all stocks.

the redundancies and the fragmentation's seemed to have prevented this from being a wider problem. for those who might be cyber criminals, who might think of hacking into, what message does this send to them that safeguards the firewalls, seem to have been in place and seemed to have worked? i think security at these exchanges is extremely high. i do think they spend a lot of time and money making sure they have secure systems and it is not as easy as hacking into a website or something like that. they have a difficult time hacking into remote data centers out there. more likely a hardware and software type issue isolated at a particular type of exchange. for cyber criminals to think they can get income i do not think that is the case. we still have too much liquidity dispersed amongst too many market centers.

you have to get better transaction quality. pimm: you have got a comment about what is going on? >> one thing to keep in mind that is important, when the down, they knew what will --e was an fix it fixed it. then they figure out how they will restart the markets. markets are the down, it does not mean they have isolated the cause. maybe they have fixed it. pimm: we should not read anything into that? >> not just yet here and i don't think so. pimm: thank you, sam. just to recap, the new york stock exchange stock trading. not affect trading in stock options or futures, nor does it affect trading on other exchanges.

let's bring in cory johnson live from san francisco. what do you make of what we have been going through here? cory: i think you're right to point out all those things, to say it is not cyber terrorism or a cyber attack. in the context of united having router problems, it is good to point out that is an important thing. the magicians trick where they waved their hands a lot and say, don't look over there? the new york stock exchange might look like something like agostock exchange 20 years p it is nothing of the sort. it is in new jersey, not new york. that is where most of the trading happens. technological changes over the course of the last 10 years, to respond to the demand of high-frequency trading and the revenue promised by high-frequency trading, has what they changed

business is. the technology problem comes on the heels of a massive technology overhaul. maybe we should not be surprised that dealing with the demands of high-frequency traders, whether it is the volume of the trade, the massive speed at which those trades happen. where other trades are happening, trying to take advantage of discrepancies, it little surprise that would be a technological feat like no other. pimm: is this affecting anything in terms of trading you have been able to track for technology issues? many of them not affected by this extension trading. one of the things we are seeing right now is that there trading that happened far away from the new york stock exchange. 20 or 30% of all the volume traded.

in terms of the nasdaq listed stocks, those are trading unhindered with most of the dow and 70% of the s&p traded. while those trades might go off somewhere else, the price of are only based on the closing price. it could pose a big problem for those industries. but i think the other issue here is the image of the new york stock exchange as a technologically confident entity. in the wake of the facebook ipo debacle where the nasdaq face planted on arguably the most important -- pimm: give him a little bit of love. it is not like this happens every day. these are big and complex systems that normally do not happen. there is price discovery. you just do not get it from the new york stock exchange. cory: that is my point.

if the nasdaq had a one-day issue on a one technology ipo, and yet in 2014, most of the ipo's that happened in the u.s. market happen in the stock exchange. most happened in the new york stock exchange. it is not an accident that happened after the debacle, the facebook ipo. the black eye of the new york stock exchange even though this is a one-day event. pimm: well done. mark: brad bailey is a research director who joins us on the phone. brad, thank you for your time today. let me piggyback what pimm and cory were talking about, apostle reputation hit cousin of the events today. what are your thoughts? brad: that is certainly a very clear point. i think we have to put this in context. we live in a very technologically advanced marketplace.

these things do happen. the facebook ipo has pointed out, the glitches do happen. we do not know what it is, just to speak from the point of view of what facts we know, we know the market's down. we do not know what caused this. -- it is not an instance of something going crazy. this is a fundamental technology issue for what we know now. time,do the analysis over we will see. to the point, it will not look good. in hisld we live high-speed, high speech rating. things are happening as a product of market structure in happens,n and this technology goes down, not just in exchanges, everything. pimm: the inability for money

managers or mutual funds in order to rebalance their holdings. what can you tell us about the dependency that exists on the new york stock exchange for those things? new york has been such a core part of the landscape. if you look at the market today, and look at what is happening, not too long ago, the embargo went down. it went down. but the robustness of the market is such that all the new york stocks are trading away. trading in other venues, trading on nasdaq, trading and other liquidity venues. that is really a strength in the market. in terms of the industries, this is something we have to discuss if we do not come back up. i think there is a lot of caution in terms of what happened, will be the implications, what could be the unintended consequences, of

coming up too soon. i know from other experiences they would certainly want to see the market come up before the close to address these issues. mark: standby as we reset for our viewers around the world who are just joining us. trading is suspended in all stocks at the new york stock exchange credit have an 11:32 a.m. new york time. they have been reporting what they called technical issues before trading was suspended and all securities, the composite index all affected because as pimm pointed out today, they use prices from the nyse. there was no panic as we were told on the phone earlier. where have 11 places people could place their orders. out, it hyman pointed accounts for about 13% of the trade. again, people had other places where they could execute their orders. as bill mattingly told us from

washington, u.s. department of homeland security saying there is no evidence of a hack attack or a cyber attack. the trading still continues on the nasdaq as well as the exchange, as well as the other exchanges. this also does not affect trading in futures and options. i want to bring in michael now, and institutional equity sales trainer and managing director in milwaukee. michael. thank you very much for joining us. what can you tell us about being able to execute stock trades? michael: when i saw the , itlines across twitter never for a second interrupted my order flow. it kind of never really impacted our clients and their orders that my job is to protect and execute. perspective, you could

approach this by looking at the resiliency of the u.s. system and affect there are multiple venues. those kind of saved the day, to be able to trade stocks on a different exchange, in this instance, was a net positive. were when those orders coming in, what were people telling you? was there a sense of panic or were they can't? michael: no. i deal with institutional clients. the bulk of the time, we are doing 200,000 million share orders. engaged with our clients when we are executing stocks. like,ill call up and be hey, what are you hearing, is my water affected? our job is to figure what is going on and get a quick answer, and then say, it is not affected. i am executing this on an alternative exchange, and your orders are safe here. michael, how long can the

outage continue before it affects your business? gohael: i would say it could all day. we could go all the way to the close today and still be able to do our jobs 100%. the n.y.c. certainly would not want that. i think you would start to throw up all sorts of questions about how resilient the systems are in the face of a glitch, we want to come back up, but in terms of how executes are, trades, we could go to the close today and be ok even if it does not reopen. how frustrating is this? we are approaching two hours since trading has been suspended. we still have no answer on what happened. it is frustrating, something we want to come back. it is hard to do your job when you do not have all your tools available to you. you would like your entire suite of tools available. nyc is a valuable place to execute and for us to our business.

we want them to come back and i think our clients want them to come back or the regulators want them to come back. it is frustrating. you do not want to go to bat with a bat that is broken. we want them to come back and hopefully comes back very soon. recap that stocks are continuing to sell off but they're off their lows of the day. the s&p 500 is down about 1.1% and the dow jones industrial average down about 1% to what about the idea of not being up to get the prices in order to compute the value at the market close? michael: that will be a problem. the dow in most s&p industries are reliant on the data feeds. they would have to get guidance. i do not think of seen a situation where they have been able to print the closing prices for the bulk of the day. i would assume they would have to get guidance on how to handle that index pricing at the end of

the day. you could end up with one price price on and another the return of exchange and not know which one to go off of. it does seem to me, as a little unexplored ground as to how that would happen. allnot sure we have gone the way to the close on a day like today without it reopening or without guidance on how that would happen, frankly. mark: i have to ask, what do you believe the says about the technology down at the new york stock exchange? draw anyi would not broad conclusions yet. i'm sure the n.y.c. has got collocated systems like we all do. the main take away here honestly is the resilience of the u.s. equity system is there. even with the loss of a major exchange, we can still do business. i think that is good. in the broader sense, that is a good thing for equity markets and it should instill confidence

in people that even if the nyse goes down, you can still get your stuff done and we can protect you. michael, thank you so much for your time on what has been a very busy day. we appreciate it. i want to bring in now michael regan to give us an update on what he has been learning. pimm: since you joined us an hour and a half ago, what have you learned? michael: we still have been waiting to see you when they think the system will be back up and running. the big question is the closing auction at the end of the day, when most of the volume is done. the open-ended and closing auctions, it raises a lot of questions about whether they will be able to get the auction done and if they do not, what will they do? it is unprecedented. i've been doing this job for eight years and i do not remember them ever having a problem of this menu to it where the threat of closing like that. that is where a lot of your mutual funds send in their orders for the closing auction.

it is right now a big mystery on whether they will pull that off. mark: it is about 1:19 easter time in the united states. what about the backlog orders? how will they address that? people are sending orders and orders are basically entering the system and just routed to other venues. nike canceled all the orders it had backlog in its system. presumably, they are all gone. an initial problem they reported early this morning was that customers were not getting back notices that the traits been received. that come to kick things. if you send in a trade and do not get the confirmation that it is there, you might send another. that is happened before. it causes all sorts of problems that potentially all those orders could be executed at once. clearing out the orders present -- prevents that problem from happening. pimm: we are also getting word willeeper of the dow jones

issue a statement at 2:30, is indeed trading has not reopened, by 230 -- 2:30 p.m. eastern time. michael: that is the big question looming. can you trust what they're telling you or are they not putting out accurate information? we will hopefully get word from them soon on that. nyse hasyou find the been forthcoming? michael: they are. they have been sending alerts out all day. they obviously want to fix the problem. eventually, we will get a big long autopsy i assume of what actually happened. the priority right now is getting the system up and running again hit you can cut them some slack for not getting you the information sooner. ?ark: what types of challenges they will have to dive right into this and find out what exactly happened. michael: that is a great point. this has been for a long time

now, i was recent -- reading a report and they are saying this could have a lot of political replications. they expect congress could possibly call some hearings even before the august recess to put winds -- nyc and tell us what exactly happened here. possibly pressure them to beef up their systems, create more redundancies and that sort of thing. there could be a lot more fallout. would,tandby if you mike. thank you so much. julie hyman is standing by with an update. julie, you and i went up -- when with this five years ago. i feel a little nostalgic , though it was not a fun day for the markets. it was an exciting day to be on air and be talking about it. i want to get to what is happening underlying the stock market today. just to emphasize, trading is going on. we have talked to guests who say

they have been training. -- trading here there have not been hiccups because there are so many other venues where trading can have. we have seen the selloff continuing in the major averages, all of them down by at least 1%. continuing concerns about chinese growth as the regulators halted a number of shares in trading. stemmed to some extent but there was still a climb on a 6% in the shanghai composite. the selling continues in the united states. a look again at the intercontinentalexchange. the owner and how that has been trading today. when we got the news, the confirmation, we saw a little bit of a lake downward in shares. it is only down 1.6%. even shareholders and traders in these shares today are not selling it off more dramatically. take a look at my bloomberg terminal if you will. we have a look and it shows you the trading volume by market

share, by the different venues here. you have all the venues where you could trade stocks. the is this red chalk for month of june, just to be precise. as aas the market share percentage of trading volume for the month of june. this has also been the electronic exchange. it seems to be operating normally today. it was just this chunk of volume that appears to be affected in today's session. mark: thank you, julie. pimm: let's bring in joe, a group.ant at the he is also a former meridian equity partners trader. joe, i am wondering if you can just describe what you believe is going on and what is being done to fix this? : what i know is going on,

and i am enough to be walking in the building at the time you reached out, i got some clarification. a lot of fat and a lot of fiction. people like to use that fiction to roll the bowel -- or rolled a barrel a little bit. volume only makes up a fraction of the stock. in actuality, we can trade down here. everybody on the floor can access all markets at all times. it is part of the regulations put in place years ago. what is more important is the fact that there was a technical glitch pre-market that was known about on a small scale. it had to do with the gateway for flow coming into the exchange and executing here on the platform. unfortunately, that was exacerbated and not fixed. exacerbated and as time went on, open trading began to commence. and let -- around 11:38, it became a problem and a detriment . shutting everything down and rebooting, just like we would our ipad or outward laptop or

desktop if you are from that day, that is what people typically do. it takes a little time. the protocol once a get to the point where we conflict the switch back on, the 45 mins minimum before they could potentially indicate. the indication has guidelines toward opening. the best bet is to call your broker and talk to them about what the indication looks like. by all indications, nothing says this is anything other than that. the herd of cattle looking for information went online and cut -- at that site down and it has nothing to do with careful -- airplane flights or anything over in asia as far as i understand. no reason to think that just yet. about 30 seconds before we have to take a break. a lot of people are surprised this reboot has taken this long. it has gone on over two hours now. joe: would you rather have a reboot have it work properly each day, or would you have it reopened expeditiously, and then have a trip up again?

joe joining us, on the phone. thank you so much for your time today. just to joeld, moment ago, the starting 11: 32. the trade was suspended and all starts on the new york stock exchange. as joe and julie hyman mentioned before, other venues where you can still trade? only does the nyse still trade, but the nasdaq is still trading stocks. we will continue our coverage of the shutdown of the new york stock exchange. we have got more coming up on the bloomberg market day. ♪

mark: welcome back. been suspended

because of what they call a technical glitch premarket. pimm: yes. let's go straight to the top headlines at this hour. go ahead. the biggest u.s. share venue halted trading to fix a computer malfunction. the suspension started around 11:30 new york time. it dropped the biggest u.s. platform out of the interconnected network of venues that make up the equity market. the network continued to operate as other exchanges such as nasdaq global market pick up the runoff. >> new york stock exchange is iconic and the last thing i want to see happen is anything go that with the new york stock exchange. i'm rooting for them to get the issue fixed. them becausewith these technologies are very comp get it. doope they get back up and not suffer any reputational harm on the spirit i do not believe they will. they said in a twitter message the issue was internal and not a cyber breach.

there are a number of developments in the greek debt crisis today. greek -- greece has formally asked for a bailout. it comes the day after the team leaders imposed a deadline. they told greece to set the record -- the rescue plan by sunday or risk getting kicked out of the euro. the greek prime minister alexis tsipras promised to deliver. alexis tsipras: we have concrete proposals in detail. in the next few days, we will be able to meet obligations of this crucial time in the best interests of greece and also the euro zone. mark: greece has extended the bank holiday through friday. capital controls will also stay in place. securities regulators in china banned major shareholders and corporate executives and directors from selling stakes in

listed companies for six months. themove comes after benchmark shanghai composite index fell almost 6% today. sincedown more than 30% june 12, more than three chilean dollar drop in market value for investors. much of that money is borrowed. >> seven point 1% official growth seems comfortable for most of them. they're happy with unemployment being where it is right now. corruption forms are moving ahead as planned, massive new national security law and internet, they like that. what they are doing has not been according to grand plan but feels comfortable and decisive. mark: the chinese government has taken steps to prop up small tax -- foreign investors continued to sell their holdings at a record pace. pimm: the international monetary view thatrated his

the federal reserve should hold off raising interest rates until next year. it came as part of the annual assessment of the u.s. economy. the imf held its forecast to the economy that will grow 2.5% this year and says it will grow 3% in 2016. we get -- we may get more of a sense minutes from the last policy may curve meeting will be released at the top of the hour at 2:00 p.m. eastern. those are your top stories. as we have been following the trading on the new york stock exchange has been halted out for two our spirit the federal government is closely monitoring the situation. the burp -- department of homeland security officials say itis not doing -- did not -- is not due to a cyber attack. phil mattingly, what can you tell us? phil: federal officials are very concerned when an event like this occurs. based on everything we have seen related to cyber attacks, the department of homeland security

within about 30 minutes put out a statement saying they did not believe there was any malicious intent that would have led to the new york stock exchange to stop operating. that statement has been followed up i other law enforcement officials i have been talking to across the federal government over the last hour. the fbi actually reached out to the new york stock exchange to see if any law enforcement action was needed. they came to the conclusion after talking to the new york stock exchange that it was not. the fbi was no longer involved. the justice department paying close attention overseeing there. the white house advisers have briefed the president on the issue not because they thought this was a major problem but just because underscoring the fact that when the new york stock exchange goes down, the president needs to be in the loop. is the the focus treasury department and the top economic advisers keeping a close eye on what is going on with the rest of the markets. we know the securities and is keeping aission

close eye on both the new york stock exchange and how other markets are operating. they are in contact with the nyse and that is continuing a slow to the federal government in a situation like this response very quickly and for good reason. you look at the hacks that have been alleged to north korea and sherbet it to china in recent months. it all starts them to move quickly in situations like this. all lawrs according to enforcement officials i have been speaking to, that those fears would not or have not been recognized or realized so far. everybody is fairly safe to say this has been a technical issue. also cautioning their will be a close eye on this going forward particularly on the market side and at the international economic council over at the white house. mark: how important was it for the white house administration to call him fears as you just mentioned that maybe there was some sort of conspiracy because we saw this happen at the new

york stock exchange in an earlier today, united continental grounding flights here in the u.s. because of a computer problem. i have dealt with law enforcement officials for a number of years now in washington. they are not always the most forthcoming. they were quick to label this as not a cyber attack. they were almost as quick to make clear there was no connection whatsoever. i think they recognize right now that calming fears across the country, combing fears across market, was extremely important here. i think eager than that, they had a lot of federal officials that make almost scare tactic like statements on what could occur in a major cyber attack. a hit is almost one of the go two points as they try to push lawmakers to address this situation legislatively. i think they're cognizant of the fact that when you make those statements, you need to quickly to folks thatate

that is not actually what is occurring at the moment. they movefast, quickly, and they usually do not move that quickly in general, but it makes clear they were fairly certain to be able to make the statements on the record, that they were right. mark: phil mattingly is joining us. we are standing by because a white house press conference is just about to get underway. pimm: he has got the federal reserve meeting released at 2:00 p.m. eastern .ike regan is still with us and joining us on the phone is joe, a consultant at day one group, a former trader at meridian. joe, i wonder if you could update us. what is the process to get markets restarted? once systems are all cleared and they get greenlighted, they can turn everything back on. it does not mean to let stocks trade, but that is effectively

turning the platform back on it once that happens, it is approximately 45 minutes before everything gets greenlighted. happenthat would ideally timee 2:30, the considered clearly where the nyse is angling, losing an extra half hour or 45 minutes of market share is not a top priority. it is making sure everything stays here on the nyse, of paramount importance. mark: all right, joe. standby if you would for just a moment here you are looking at a live shot of the white house. josh earnest is speaking to reporters as you see on your screen. no indication of malicious actors in the technical issues. let's go to the white house reef we in listen in. >> our security posture is continually evolving to reflect

the current environment. i'd you not have steps we have taken at this point, but i can that officials, even on days when these kinds of questions are not lingering in the air, are very vigilant about to anneed to adapt environment in cyberspace. that is filled with hackers. >> on the hill today, senator schumer unveils himself some --ns to overall >> you have been listening to the daily press briefing at the white house. josh earnest speaking about the shutdown, saying as of now, there is no evidence there has it any cyber attack or any hack attack on the nyse and nyse earlier today saying this was an internal issue. we are speaking with mike regan, and berg stocks editor, and

joining us on the phone is joe greco of one day trading. mike regan come in addition to component -- composing all the issues at the end of the day, whether the s&p 500 or the dow, you also have index changes that occur on a regular basis. tell us about this. big question is a right now. the closing auction is obviously a big deal for index funds that are buying shares. the s&p dow jones has said if this is not back and up and running, they might postpone changes. the big questions still are, what was this group -- what was the glitch and why is it taking so long? times is reporting a traitor on the floor said he was told there was a software they try to upgrade the

software in one of the computers and it did not work right here that has happened with other market glitches we have seen in the past. it explains why it is taking so long to get the system up and running. if you add new software and it that isorking properly, a challenge and not a simple thing to debug. you have to go back and figure out exactly what is wrong with it or maybe go back to the old software. and alsoexplains why how you come to the conclusion , it rules out cyber attack pretty quickly. mark: all right. mike and joe joining us on the phone. we appreciate it. a lot of other things are happening today p or we have the minutes coming out at the top of the hour as well. pimm: yes indeed. we will have much more next. ♪

mark: welcome back to die mark crumpton here with pimm fox. pimm: let's get a check of the markets with julie hyman. i know we have been talking about the new york stock exchange being closed. trading continues elsewhere and really today are not falling off. they're falling versus yesterday. yesterday had unusually high volume, but not falling versus the 10 day average. look at the s&p and the dow and the nasdaq all down 1% or more on these concerns about china largely. take a look inside the bloomberg terminal.

they'reors and where moving, you can see it is all right here today. a broad-based selloff within the s&p. ,tilities are down the least telecom's down the most, 1.9% at the moment. i want to take a look at the moment at what is going on your today. as we fall today, depending on where we settle out, it could be the lowest since april. we were the lowest since that a few days ago. since then, we are down about 3.5%, just to give you a little perspective on the selling we have seen in recent days there and i mentioned china. let's take a look at how the china an etf are trading. at the shanghai composite and the other major averages in china, we did have chinese authorities suspending trading at more than 13 hundred securities.

this is an etf that kept large tract chinese companies created outside of china. this is the a share, the etf a prank 5%. this affects the shares that do trade with in china. both of them are down sharply. then there is a lot of concern about companies that get a lot of revenue from china. they are falling well today. it gets nearly two thirds of its revenue from the china region. the auto parts company. hit iners have been recent days not just by china concerns, but what is going on in europe as well. down nearly 5%is today. examples of china related declines that we are seeing today. >> a story about automobiles in

two years. mark: joining us now on the phone, steve, and equity risk management -- manager. so much for you your time. it has been almost two hours now since traders had been suspended in the new york stock exchange. what have things been like in your office? steve: they have generally been able to be quiet. a lot of redundancy in the system so things are generally normal. the options markets have not halted any ink. we are trading normally. tight when youry think about the fact that we were down about 1% when the glitch happened. we had only moved a couple of points in the s&p in that time. muted.ction is very

>> the concern would be a lot of bad trades could get through the system. any worry about people putting in trades about how people can be executed way in the market or anything like that? there was always that fear although they were pretty good about wiping the orders of that system had i have got to believe that will be in upper precaution they will have to take it for a bring anything back online. hopefully, they have done their work in that regard as they said they half. wonder if you could detail for us what it would be like after the stock exchange is up and running. what kind of tackle orders do they have to do with and what kind of paperwork to they have there? traitor'm an electronic so i have no paperwork. but basically from our point of

view, i think it will be relatively transparent, as long as there are no dislocations versus the rest of the street when they come back up. an interesting event is 12 minutes or so when the minutes if there we will see is some volatility that results from that and how that gets handled. but i believe it should be more or less business as usual with a glaring exception. steve, joining, us on the phone. and mike rican, as we approach talking hour, we are about the fomc minutes, talking about technology, about all things that can impact the markets. we should point out things work home on wall street today. classic could have been a lot worse with a lot more ripple effects. an interesting thing a lot of people have been worried about

is the actual integrity of what the indexes were showing. ally on our team spoke with spokesman for the s&p dow jones about the issue he said around 11:50 this morning, we switched to a composite tape and what they would usually do is take a direct feed from nyse. every siege has its own data sheet. some customers described all of them and some just take a composite. it depends on how much data you want to take. computing the level, tape, ad composite blend of all the exchanges and venues around the world. that is what they are using to compute the indexes. was not much there of an impact on the s&p 500 before they switched. in the dow, the movement was minimal. what is minimal is quantifiable or do we do not know yet. we do not know what the index was showing throughout the day. it seems like they have a

situation place to do with the situation. >> there are two size of the story. we had a frank minted market. trading is all over the place. this could beat example of a good thing. thank you very much, mike regan p or we will follow any development out of the new york stock exchange and find out what is going on. stay with us. ♪

mark: welcome back to it i am mark crumpton here with pimm fox. more than two hours now due to a technical glitch. this followed a rough day where stocks got hammered.

pimm: action from chinese government officials failed to stem the decline of stock prices. joining us now is the bloomberg news reporter who covers emerging-market stocks. so the chinese government has tried to stem the decline by barring the stick -- the sale of stock by people who own more than 5% of a particular company. will that work? >> no. so far, giving the evidence, this is the 10th in a row they have tried to impose some sort of counter measure throughout. for nine days in a row, it has not worked. it was just a this would cause more panic and more fear in the market than anything else. a sense of howe investors had been gauging the moves by the government? they are reacting largely

by liquidating positions. that is a sick way they're going about this now. it will be difficult to say how much foreign investors will be impacted by this move. the chinese market is relatively close compared to your typical standard, global market. the impact would be somewhat contained two major investors in china. going forward, it will be tough. collateral.bout the chinesethe collateral investors have? boris: this is stemming from the fact chinese retailers levied up calls the route began, began to go in and it is creating a vicious circle downward where they have to sell stocks to meet margin calls. and then the price has declined

further. become a very sticky situation that the government is trying to intervene in. official policy had a difficult time getting investors out of this panicked psychosis. thank you so much. this has an interesting day. i think you have an appear since yesterday? market andbefore the new york stock exchange. followe will continue to the developments out of the stock exchange. are calling a technical glitch. bloomberg market day continues in just a moment. ♪

mark: it's 11:00 ayman tempests 11:0000 in hong kong -- a.m. in san francisco.

good afternoon. i'm mark crumpton, here with scarlet fu. scarlet: we have some headlines from the new york stock exchange. close to reopening two halted exchanges. we'll bring you the details when it happens. they have been halted from trading since 2:00. mattingly is standing by in washington. good afternoon. phil: we are talking the fed minutes just released from the meeting. while members to express caution about the economics, both domestically and internationally, they still made clear in those minutes that they are on track for a rate hike at some point this year. that is the bi