Nasdaq cancels Kraft trades after huge gaffe

Shares in Kraft Foods Inc. soared nearly 30 per cent on Wednesday after a trading glitch on Nasdaq. (JOHN GRESS/REUTERS)

Shares in Kraft Foods Inc. soared nearly 30 per cent on Wednesday after a trading glitch on Nasdaq. (JOHN GRESS/REUTERS)

ARASH MASSOUDI and ALAN RAPPEPORT, NEW YORK/WASHINGTON — Financial Times

Nasdaq suffered its second high-profile embarrassment in six months when it was forced to cancel trades in Kraft Foods Inc. after a trading glitch caused the company’s shares to soar nearly 30 per cent.

The error marred the completion of the recently split group’s switch to Nasdaq and evoked memories of the exchange’s botched handling of the Facebook Inc. flotation in May.

The trading error and cancellation came a day after U.S. regulators met to address concerns about the impact of technology on market stability. Weeks after Nasdaq’s bungled handling of Facebook’s public offering, a software error at Knight Capital caused the electronic trading and brokerage company to suffer a $440-million (U.S.) loss, sending it to the brink of bankruptcy… Read More

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