nicole: if you're tom farley at the new york stock exchange u.s.a. the right thing.happen today. they were shut down for three and a half hours. the outage was caused by a software update that did not go as planned. the nyse stressing the problem is not a cyberattack. she told us he was an internal issue. they got it up and running. certainly was a bone of contention. on the floor throughout the day waiting for the constant updates as to when trading would resume. also tom farley was asked what is being done to prevent future problems such as this one. >> today was focused on finding the issue in fixing it. right now for us tonight we will focus on evaluating procedures and making improvements that we are not in this position again. long-term it continues to get better every single day. >> the monster of technology. at the same time he noted they are looking at it overnight. i sent a note to the communications team to see if there's any findings. lauren: when i was on the trading floor, more information is always better. its stock was halted and nobody explained why,

tom farley president of the new york stock exchange here with me. tom, give us an update. >> sure. sure. so tough day, bob. we opened -- we opened the market as usual. so all the nyse listed stocks opened without incident. and around mid morning, started to see some concerns about the way trading was occurring. customers weren't getting all of the messages back that you would otherwise expect. we made the decision -- i made the decision consistent with our rules and working with our counsel and regulatory arms obviously to suspend trading here on the nyse because we want to make sure nyse stocks wouldn't be negatively impacted. during the day as you know they continue to trade on various venues. i've said to the team we have a great team they're working on it. i said take your time identify the issue. these stocks continue to trade. let's get it right. let's identify what it is. let's put in place the right plan. let's make sure we communicate to customers, let's make sure we communicate to the s.e.c. i've been in touch with them. let's make sure we can bring the market back up for

sandra: there was. >> tom farley had a great interview with us. see a lot of issues until the 11:30 time when he decided to suspend everything, fix it, take it down with a nice close. sandra: low way they came out with the information was biggest problem. >> hack, we talked about cybersecurity, hack is listed etf yesterday which is basket of cybersecurity stocks. sandra: that of course was the biggs concern and speculation that we were being hacked, that the new york stock exchange was being hacked. that is why everybody was tuning in to see if this was the beginning of the end. >> because "wall street journal" website and united glitch. three events in couple of hours seems like more than a coincidence. sandra: thankfully it was not. no hack this is week. let's get you caught up on the global markets. this friday morning european stocks green arrows there. ftse, cac and dax all higher on greek debt hopes. stock market futures here at home green arrows. dow futures up 157 right now. and checking in on oil after the release of the latest iea foreca

tom farley will be back with us here. and we'll do a little recap with him and see if we can figure out what exactly happened. that'll be in a little while here. >> and let's ask bob pisani first, though. what did you find? >> what exactly happened. so here's a brief time line. at the open there was what was described as some connectivity issues. and what that means is the nyse had brief problems communicating with customers about the orders. so remember there's massive amounts of data. see these pipes up there? those are data pipes that go on to the floor to communicate with the floor and the outside world what the prices are, what orders to buy and sell are bids and massive amount of data keep coming in and out. the nyse has these engines. gateway engines that are out there that make sure this data is aggregated. and then there's matching agents to make sure orders to buy and sell for everybody's stock match up and that you get that information out to the outside world. it's a big job. if there is a trading, if there is

i spoke to tom farley. and i believe that it was that software update that bob had just spoke about. so i have to see the markets open again. this is no different than we had with flash crash, we had with the financial crisis. i need to see the markets open again. i need to see -- have confidence when i watch it a couple days in a row. >> all right, steve, stick with us. actually, steve's going to be with us for the entire hour. but let's talk about what this did to trade k for you guys. karen, were you trading today? >> we're not big traders. so you know, that's not going to be a giant problem for us. but it does make me wonder about the franchise of the new york stock exchange itself. and to me what's most damaging is to them as a stock in that they had this business that people can look and say you know, i can go around, it i'll find a way around it. and what does that do to their franchise? >> what do you think? >> you did see that, right? because volumes weren't really down that much. you saw -- bob ca

tom farley, his number two may not provide this.y kelly leffler, sprecher's wife, told me, told courtney crawford my producer they still stand behind him but you know, there is mr. farley. but he is the number two. i'm hearing from the floor that 50/50. liz: we all heard the question the black swan event. they were calling it a black squirrel event as if a squirrel chewed through the line. a good i.t. would have found it for two seconds but they still haven't it said was it overnight attempt to upgrade something and they tried to reboot the system? >> i think it really hurt their sales pitch going forward because the new york stock exchange, this is the physical place where you have people trading. hey this, computerized age we still have actual place that keeps things going. >> you have to keep the i.t. people, i think, a few of them. >> apparently. >> what would i do about i.t. people? liz: i call them every day. they hate me. >> new york stock exchange, they hate you. liz: no. they really hate me down there, the management. jack

the ceo tom farley joins us next. ♪ alix: what did you miss? i'm alix steel.phanie ruhle is standing by. take it away. thisom first thing morning, problems, messaging, walk me through that and the shutdown. role in theur center of the global capital markets seriously. our systems, trusted, available at all times. the open went off as you would expect. we were getting intermittent messages with customers not seeing the data and messaging they would expect. we have theel like level of trust in our decisions is required. i made the decision working with our regulatory teaming counsel's office to suspend trading at the new york stock exchange in part because those listed stocks continued to trade elsewhere during the day, and i told our team and a delivered fashion to determine what went wrong, put together multiple plans to come back up for the close. great job holding things firm, but you were out for 3.5 hours, and when you came back, volumes were up, almost the beat goes on. what does that say about our need? stocks. harm for in why as the market consolidates

i mean, tom farley's fabulous. they do a great job. i love the floor. it's great to have governors. but at the same time, we see that the system is fabulously redundant. i mean, more redundant -- >> to your point, the statement by the s.e.c. would be something that you'd expect. >> i'd expect it. ta that's all. >> you'd expect it. i'm looking at the tape there, and i don't see anything aberrational in stocks. they're down with what you'd expect them to be down with the market that was already down significantly. so there was absolutely no panic at all. maybe when the first time they halted on the exchange took advantage of some very light volume, but i don't see anything. you want to buy something when the market's down 1.5%. >> because the aberrational thing before this happened, okay, i get it. when europe's down, we're down. when china's down, we're down. when europe's up, we're still down. the aberration today was that we did not take our cue from anything at all in europe. i'm beginning to get worn by the fact that we take our cue from everything negative. bad earnings, maybe t

we're getting this from people on floor, floor traders are saying there is a 50/50 chance that tom farley this, for what is obviously a public relations disaster, not informing the floor traders, not informing either -- the public that, you know, they could still trade stocks. people actually thought they couldn't trade stocks because of this thick. they say it's a 50/50 chance that he might be let go -- liz: he walked out and gave cnbc an interview twice before talking to us. >> i know. we did call the new york stock exchange spokeswoman, kelly leffler, for comment. she is the wife of jeff sprecher, the ceo. it's kind of odd -- [laughter] but in any event, you know, she says they are still supporting mr. farley 100% as of now. but i'm telling you, every floor trader i speak to say his job is on the line, it is a 50/50 chance that he survives this. because, you know, it's not just us saying it, it's rudy giuliani, former mayor of new york, there's everybody, institutional investors, terry duffy over at the cme -- liz: dick grasso. >> why didn't you guys come out and say the obvious to, yo

tom farley told bloomberg that was his focus. >> the most important thing, hippocratic oath.o no harm. my first concern was do no harm during day. those stocks continue to trade elsewhere. get the problem fixed and back up and running by the close. >> the dow jones industrial average resuming trading where it left off. less than an hour before the close although they are rare on this scale computer breakdowns have become a fact of life for american investors operating in a market that is sped up and spread out. nyse management said the problem was internal and not related to cyberbreaches. farley said it was more likely to do with a software upgrade gone wrong. matt miller, bloomberg, new york. ♪ manus: welcome back to "the pulse." i am manus cranny. shanghai ins -- shanghai index has posted. chinese authorities introduce more measures in an attempt to restore confidence in the stock market. regulators have announced banks can rollover loans backed by shares. that after officials banned the stakeholders from selling shares. he will walk away from a bad deal. negotiations are

it was just an hour ago that tom farley, who's the president, of course -- and, remember, jeff sprecher of ice -- is the man who really is in charge here. he's in chicago, he's based in chicago. they did not come out until about an hour ago, and then they wouldn't speak to fox business, they wouldn't -- abc, cbs, they're all here, bloomberg, they would not speak to us. they only spoke to cnbc. now, charlie gasparino, you're in the chair at the moment. it is now 3:05. teddy, is it trading yet or what's going on? do you see -- no? still not. the amex stocks are not trading. can you just yell at me, teddy, when that does happen? so, charlie, do you understand the frustration on behalf of traders here that they've been kept in the dark? >> well, i would just say this. jeff sprecher is ceo of the new york stock exchange. his wife, we should point out, is one of the top people in, you know, in public registrations. -- relations. and they botched this thing in a major way. why did they botch this? this is what i can only assume or surmise, is they botched this because if they came out -- kelly

. >> i would say this, we heard tom farley, a terrific young leader of the exchange, it was not his best day, if they had been more comm cative early -- communicate early on say, you know, it may be that there are other technological issues that united airline and at "wall street journal" but we think we think, we're not sure, but we think we may have caused this internally because of an overnight software change, people would have been more comforted its are not a full-scale assault on america from a cyber stand point. now, you know, you learn from everything instance. i think what the nyse is learned is that it has to be more comm -- complicate with media, have you media right there, nicole, right there, a fabulous job today. investor may have been more comforted. as i know you know, stock exchange list securities traded if 15 different venues, not as if there were no markets available, the question is how reliable were those alternative markets. we don't know new york stock exchange is the primary center. charles: i want to ask you, on that note, when i watch the screen, nicole did a

we talked to the president tom farley. he said this was a tough day. not a good day. it was an embarrassment and black eye for the new york stock exchange which is a huge symbol but the bottom line is it did not effect trading which was already anxious on headlines out of china and europe. >> sarah, you had a front row seat as this drama unfolded. what was the reaction from traders as they first got word that trade was halted and is this going to impact investor sentiment going forward? >> well the sentiment question is really key. we know that americans already have pretty lousy sentiment toward stock market investing. three years ago it happened at the nasdaq which also lasted a few hours. i'm sure you remember. that was sort of alarming. we had the flash crash as i mentioned. the facebook trading debacle. all of these headlines don't help a public sour on the markets and has never come back to stock since the financial crisis but being there on the floor yesterday was interesting because all the traders threw up their hands. they couldn't trade. they didn't know wh

. >> if i'm tom farley and this happens, the first thing-day is freak out and try to figure out how tohe software. the second thing is can we trade with paper and open outcry to show if this is the only place that if technology fails, the system is preserved. did they ever do that? >> there's real problems with doing that. they're all using handhelds at this point and the handheld devices which everybody uses, here, pardon me, show them the handheld device is here, good example, the handheld device is how they communicate. so the paper doesn't really even exist any more for them to do that the question was could you guys ever use paper devices any more. >> we'd like to. >> there's a comment, an honest answer from a broker for you guys. >> there was a fair amount of frustration in-house, bob, yesterday, no surprise. we'll come back to bob pisani who has been our eyes and ears on this for the last couple of days, our thanks to him. >>> we talked about fireeye being up 1% is that a long-lasting dynamic? people talk about the flash crash, but i'm not sure decisions are made with that in mi

there's tom farley on cnbc yesterday afternoon. >> around mid-morning started to see some concerns about the way trading was occurring. customers weren't getting all the messages back. i made the decision consistent with our rulses to suspend trading because we wanted to make sure that nyse stocks wouldn't be negatively impacted. >> trading on platforms other than the floor was uneffected and despite the halt nyse consolidated volume which captures trading across all platforms was heavier than normal due to the global market sell off. speaking of stocks let's check on how today's session is shaping up. u.s. equity futures looking for a bounce back after the big sell off yesterday. dow futures implied with an open plus 150 points. here's big stories we're watching today at this hour. >> we'll start with china. beijing taking drastic steps to prop up it's market there. along today's move banning shareholders with large stakes in listed firms from selling. it closed up nearly 6%. elsewhere, south korea rates overnight but did have the country's economic growth forecast. and then of course h

. >> tom farley, thank you for coming on. >> thank you.re here every day and glad you were able to come on. >> i appreciate it. david: nicole, thank you very much. you heard the stock exchange president saying it wasn't a cyberattack. anonymous appearing to take some credit. you might have seen anonymous before. this is a cyber-terrorist, if you will. taking some credit for the issue. calling for a rally on the nyse starting at 5:00 p.m. eastern. joining me morgan wright, cybersecurity analyst and senior fellow at center for digital government. morgan, how do you balance what you heard the nyse president say according to the best information they have this is not an attack with that anonymous note from last night? >> look on september 10th of 2001, if a plane went down we would have thought it was tragedy. we would have sent out the ntsb to investigate. on september 12th, everybody wants to know is this terrorism, who is behind this? with all the megabreaches and data breaches i was sitting over in the congressional hearing on opm data bre

tom farley made the big decision to try and see what was going on, but they had complaints from investors in the morning that there was technical data issues. there was a big sigh of release when they got back online. anna: i wonder if this goes into the pantheon of famous closures are whether it will fade into the distance. it was only two years ago. let's talk about greece. we saw an interesting angle on the greek story, when we get an interest rate decision. pete: mortgage rates, house prices, mark carney -- they will be releasing the latest base rate figures. we have a survey of 41 economist 's and all believe it will stay at 0.5%. anna: not much change. jon, what is your take on the u.k. economy? is going to be the second fastest growing this year and we heard from the chancellor extolling the virtues of the recovery even though austerity needs to be kept up. jonathan: we have managed to decouple ourselves fairly successfully from the european economy. our growth is not due to europe so much the cause in fact we have a trade deficit with 24 out of the 27 other european countries. are

>> in this specific case, as tom farley said, his aim was to do no harm and it looks like there, washe heyday of the computer glitches in 2012 when the nasdaq could not yet trading going. knight capital blew up. those were cases where there were cleaved victims -- there were clear victims. .it's not clear that anyone lost money i compare it to going to the mall and into the food court and there are 12 restaurants on the all serve the same thing and one of them happens to be closed. tom: where is the new york stock exchange in five years? where is this museum in five years? >> it is hobson's choice. if no one lost money, it means they don't matter. tom: what did you learn yesterday about this museum? >> the floor is a museum but they are still one of the major players. the market shares are fragmented at 13%. . spread among 11 exchanges, that is still a leadership role they are still important what we think of as the big board. the guys on the floor are less important. vonnie: it's not exactly a commodity. did this materially impact the exchange in terms of earnings? >> that's a good

you saw tom farley walking by. >> i think what they are doing is monitoring the close here today. >>ay they were doing a software upgrade. they had problems with messaging. there was some coding problems. they appeared to have tried to fix it. that created a cascading series of other problems that shut it down. attempts to constantly upgrade the software can occasionally lead to problems. yesterday was a particularly egregious example. what the s.e.c. wants to make sure of is the nyse is following what are called best practices. that includes testing it adequately. >> a minute before the end of trading session here. all systems go right now. >> volume was not bad today. 600 billion. that is not a bad day. other stocks had notable action including apple which trades on the nasdaq. twice the normal volume there. apple approaching that 200-day moving average. there are some concerns about perhaps slower sales in china affecting them as well. finally, the company is entering a blackout period. july 21st apple's earnings are coming out. companies cannot buy back stock in that blackout per

and then throughout the day, they worked with the traders and again, you know the president tom farleylevision and some people didn't hear them, but they were worried about, you know this is all contacted, the wall street journal united. the thing you have to watch, did people lose money. the volume was there. charles: that remains to be seen, also. we did close at the lows of the session and you have people wondering why all of the sell orders on the floor were held up and had to be redone. but i think we're going to continue to reevaluate this. i don't know the history of all that happened. we appreciate expertise and-- >> the question is whether they were trying to cut costs and bought it. >> and they cut it so bad. it had to be am tuted after he was playing with fireworks and that might not be the worst of the injuries and this could cost millions of dollars and we've got another finger and another finger and a full story for you after this. >> >>. >> tonight, we can this allergy season, will you be a sound sleeper, or a mouth breather. well, put on a breathe right strip and instan

they're wondering with jeff stepper and tom farley is. why are you laughing? you're absolutely right. they put up velvet ropes to try to keep out everybody from the ramp where is where the real news -- d.j. let me in. that is really element here. the traders are frustrated because they have to wait to see what happens. also want more information. the last i heard they were in the midst of canceling over 700,000 orders. those orders that were open orders. maybe market-on-close orders. down 80,000, last i heard. there is no word when they're going to reopen. the close ultimately would be the best, they have to get the close. that is the best part of the day. but for now, they're left in the dark and waiting. now just trying to eat some lunch. that is what we're down to. neil: very long lunch. nicole, thank you very much. go ahead. >> i will have to run in a minute. reminds me, this may be a off the point and twa, swissair, they both had crashes out of kennedy airport while i was mayor and new york stock exchange fire department and actually police department res