Fidelity says online brokerage orders were delayed, duplicated

Fidelity Investments said an undisclosed number of brokerage clients were affected Monday

Mar 17, 2014 @ 1:59 pm

Fidelity Investments said an undisclosed number of brokerage clients had online orders delayed or accidentally duplicated on Monday.

The malfunction lasted for about 30 minutes beginning at about 9:45 a.m. New York time, Stephen Austin, a spokesman for Boston-based Fidelity, said in a telephone interview. Fidelity will reimburse any clients who lost money as a result of the error, he said.

“We took prompt steps to resolve this and the site is now performing normally,” Mr. Austin said.

Fidelity oversees $4.5 trillion as a record-keeper for investors in retirement accounts, for financial advisers served by the firm and for individual customers of its online brokerage business. The malfunction comes two months after E*Trade Financial Corp. said some customers were briefly unable to access their brokerage accounts on Jan. 8, locking them out of the market as comments from the Federal Reserve spurred a surge in trading. Charles Schwab Corp. was targeted by a cyberattack in April that disrupted access to its service.

Zachary Prensky, an analyst with Little Bear Investment LLC in New York, said he placed an order to short-sell the SPDR S&P 500 ETF Trust at 10:02 a.m., which Fidelity filled twice, 20 minutes apart. Mr. Prensky made an extra $1,000 on the mistake when the ETF declined, he said in a telephone interview. Investors benefit from a short sale when a security falls in value.

Fidelity had 19.2 million brokerage accounts and processed an average of 407,400 “commissionable trades” every day during the fourth quarter of 2013, according to the firm’s website. Fidelity also offers broker-dealers clearing and execution services.

(Bloomberg News)


What do you think?

View comments

Recommended for you

Sponsored financial news

Featured video


Top questions surrounding future of DOL fiduciary rule

Reporter Greg Iacurci and managing editor Christina Nelson discuss the biggest uncertainties springing from the Fifth Circuit Court of Appeals' decision to vacate the regulation.

Latest news & opinion

SEC forging ahead on fiduciary rule despite DOL rule decision in 5th Circuit

Chairman Jay Clayton says 'the sooner the better' when asked when an SEC fiduciary rule will be ready.

What the next market downturn means for small RIAs

Firms that have enjoyed AUM growth because of the runup in stocks may find it hard to adjust to declining revenues if the market suffers a major correction.

DOL fiduciary rule likely to live on despite appeals court loss

Future developments will hinge on whether the Labor Department continues the fight to remake the regulation its own way.

DOL fiduciary rule: Industry reacts to Fifth Circuit ruling

Groups on both sides of the fiduciary debate had plenty to say.

Fifth Circuit Court of Appeals vacates DOL fiduciary rule

In split decision, judges say agency exceeded authority.


Hi! Glad you're here and we hope you like all the great work we do here at InvestmentNews. But what we do is expensive and is funded in part by our sponsors. So won't you show our sponsors a little love by whitelisting It'll help us continue to serve you.

Yes, show me how to whitelist

Ad blocker detected. Please whitelist us or give premium a try.


Subscribe and Save 60%

Premium Access
Print + Digital

Learn more
Subscribe to Print