Jul 20, 2016

    Disk, app failure led to trading outage: SGX

    A DISK failure and an app that did not detect the problem were the root cause of the securities market shutdown on July 14, Singapore Exchange (SGX) said yesterday.

    "The disruption was prolonged due to challenges in the orders and trade reconciliation process," it added.

    The faulty disk had been replaced on Thursday, it said.

    "We are working with our vendor to review the application which sends out clearing confirmation messages...

    "We will work with members to review their order and trade reconciliation process, to improve overall recovery and market resumption, in the event of a similar recurrence."

    The number of business continuity planning scenarios which require industry-wide participation for reconciliation and recovery will be increased.

    Detailing Thursday's disruption, SGX said at 9.38am it had detected input/output errors on a disk that runs the app to send out clearing confirmation messages to members.

    "As the application did not detect the disk failure, which it should have, it did not automatically cut over to SGX's backup secondary system.

    "SGX initiated a manual cut over from the primary to secondary systems at 1012 hours."

    As a result of the disk failure, some clearing confirmation messages were not generated. Following the cut over, the app attempted to resend all missed messages, which resulted in some being duplicated.

    SGX said order and trade reconciliation required the exchange and its members to match their trade or clearing confirmation data files.

    "The entire process took longer than expected, as members use different systems, and either the trade confirmation or clearing confirmation messages, or both," it noted.