NYSE Arca's role in the market plunge

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The NYSE Euronext (NYSE news) and the Nasdaq OMX (Nasdaq OMX news) called a truce after some finger-pointing in the immediate aftermath of what a Wall Street Journal blogger calls the Flash Crash--the massive, 20-minute plunge that occurred Thursday. But now the Nasdaq OMX seems to be breaking the truce by going public with its views that the NYSE Arca played a role. 

"The NYSE Arca Exchange began experiencing data communication issues that hindered the electronic linkages between it and NASDAQ, the BATS Exchange, and the Chicago Board Options Exchange," according to statement from Nasdaq. In its timeline on how things went down, it notes an alert issued by the CBOE at 2:30 p.m. ET on Thursday: "The CBOE has declared Self Help against the NYSE/ARCA as of 1:30 CT. The NYSE/ARCA is out of NBBO and unavailable for linkage. All CBOE systems are running normally."

The NYSE will be sure to respond, and you can bet regulators will leave no stone unturned as it searches for answers. 

For more:
- here's the WSJ blog item
- check out FierceFinanceIT for related news

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