SingaporeExchange Ltd. said a faulty hardware disk and an application thatdid not detect the problem caused the market disruption July 14.
The bourse said July 19 that it detected errors on a diskthat runs the application to send out clearing confirmation messages tomembers. The application failed to detect the error and did not automaticallytransition to the bourse's secondary system.
The bourse said it replaced the disk July 14 and completedhealth checks on the system. It is working with the vendor to review theapplication and will implement necessary changes to make sure that theapplication detects specific hardware problems.
Among other steps, the bourse will increase its businesscontinuity planning scenarios and will work with members to improve overallrecovery and market resumption in case a similar scenario happens again.
Singapore Exchange halted trading July 14 due to duplicatetrade confirmation messages that occurred after the cutover process. It failedto resume share trading as initially planned and closed the market for the restof the day. Trading of shares resumed July 15.
The announcement came a day after the bourse said itrequested to lift the trading halt imposed on its shares earlier the same day.The bourse halted thetrading of its shares before the market opened pending its announcement that itwill transfer itsregulatory functions to a separate subsidiary.