Tokyo Stock Exchange lets CEO resign to atone for October outage, other execs take pay cuts and rebukes

Wobbly NAS tended by Fujitsu crashed trading – and automatic failover failed


Miyahara Koichiro, the CEO of the Tokyo Stock Exchange (TSE), has resigned in the wake of its October outage. The exchange’s operator, Japan Exchange Group, accepted his request to stand down.

The IT breakdown saw the world’s third-largest stock exchange take an unplanned day off due to what was described as “a technical glitch occurred to distribution of market data.” Fujitsu, which provides some of the exchange’s core technology, apologized for its role in the downtime.

On Monday, the Japan Exchange Group published an analysis [PDF] of the kerfuffle, based on findings by the Financial Services Agency of Japan (FSA). The document stated the root cause of the outage was “a defect in a failed device,” and everything went pear-shaped because “a setting for the automatic switchover regarding the failed device was inadequate and TSE had not developed sufficient rules for trading resumption.”

A more extensive analysis [PDF] that’s only been published in Japanese, and which The Register has read after using online translation tools, reports that a network-attached storage box, which could not write data to a memory card, was the source of the problem.

Attempts to failover the NAS to a secondary unit proved difficult, and was only achieved after more than an hour of effort to manually switch over to a spare array. As work continued behind the scenes, the exchange opened.

The NAS fault meant that data flowing to market participants during that time was not accurate, yet market participants had placed orders and the exchange had accepted them.

Broken cloud

AWS reveals it broke itself by exceeding OS thread limits, sysadmins weren’t familiar with some workarounds

READ MORE

That all added up to a situation in which participants’ trading intentions may not have been reflected in accurate trades, so the exchange pulled the plug for the day.

The short report found that the exchange hadn’t developed procedures to resume trading in the event of an outage of this sort, and lacked clear rules for doing so. Regulators have therefore called on TSE to develop those procedures and embark on an extensive resilience-building program to make sure its IT works as intended.

Koichiro resigned, and other executives were issued “stern warnings,” and/or had their pay reduced for periods of between four and six months.

Fujitsu’s Japanese and global websites offer no statements relating to the incident at the time of writing. ®

Similar topics


Other stories you might like

  • Prisons transcribe private phone calls with inmates using speech-to-text AI

    Plus: A drug designed by machine learning algorithms to treat liver disease reaches human clinical trials and more

    In brief Prisons around the US are installing AI speech-to-text models to automatically transcribe conversations with inmates during their phone calls.

    A series of contracts and emails from eight different states revealed how Verus, an AI application developed by LEO Technologies and based on a speech-to-text system offered by Amazon, was used to eavesdrop on prisoners’ phone calls.

    In a sales pitch, LEO’s CEO James Sexton told officials working for a jail in Cook County, Illinois, that one of its customers in Calhoun County, Alabama, uses the software to protect prisons from getting sued, according to an investigation by the Thomson Reuters Foundation.

    Continue reading
  • Battlefield 2042: Please don't be the death knell of the franchise, please don't be the death knell of the franchise

    Another terrible launch, but DICE is already working on improvements

    The RPG Greetings, traveller, and welcome back to The Register Plays Games, our monthly gaming column. Since the last edition on New World, we hit level cap and the "endgame". Around this time, item duping exploits became rife and every attempt Amazon Games made to fix it just broke something else. The post-level 60 "watermark" system for gear drops is also infuriating and tedious, but not something we were able to address in the column. So bear these things in mind if you were ever tempted. On that note, it's time to look at another newly released shit show – Battlefield 2042.

    I wanted to love Battlefield 2042, I really did. After the bum note of the first-person shooter (FPS) franchise's return to Second World War theatres with Battlefield V (2018), I stupidly assumed the next entry from EA-owned Swedish developer DICE would be a return to form. I was wrong.

    The multiplayer military FPS market is dominated by two forces: Activision's Call of Duty (COD) series and EA's Battlefield. Fans of each franchise are loyal to the point of zealotry with little crossover between player bases. Here's where I stand: COD jumped the shark with Modern Warfare 2 in 2009. It's flip-flopped from WW2 to present-day combat and back again, tried sci-fi, and even the Battle Royale trend with the free-to-play Call of Duty: Warzone (2020), which has been thoroughly ruined by hackers and developer inaction.

    Continue reading
  • American diplomats' iPhones reportedly compromised by NSO Group intrusion software

    Reuters claims nine State Department employees outside the US had their devices hacked

    The Apple iPhones of at least nine US State Department officials were compromised by an unidentified entity using NSO Group's Pegasus spyware, according to a report published Friday by Reuters.

    NSO Group in an email to The Register said it has blocked an unnamed customers' access to its system upon receiving an inquiry about the incident but has yet to confirm whether its software was involved.

    "Once the inquiry was received, and before any investigation under our compliance policy, we have decided to immediately terminate relevant customers’ access to the system, due to the severity of the allegations," an NSO spokesperson told The Register in an email. "To this point, we haven’t received any information nor the phone numbers, nor any indication that NSO’s tools were used in this case."

    Continue reading

Biting the hand that feeds IT © 1998–2021