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)

0
Comments

What do you think?

View comments

Recommended for you

Featured video

Events

Martin Dempsey: Geopolitical hotspots (and how they could impact investing)

What are the big international hotspots and how could it affect advisers and investors. Gen. Martin Dempsey, the former chairman of the joinst chiefs of staff, offers his unique perspective.

Video Spotlight

Help Clients Be Prepared, Not Surprised

Sponsored by Prudential

Recommended Video

Path to growth

Latest news & opinion

Regulators showing renewed interest in cracking down on investment fees

SEC, Finra targeting high-fee share classes, 12b-1 fees and failure to give sales load discounts and waivers to investors.

Tax update: Brady says sales tax deduction in final bill

Taxpayers will be able to deduct state income taxes or state sales taxes in addition to property levies — up to a $10,000 cap.

Critics say regulation hasn't curbed overly rosy projections for indexed universal life insurance

They say rule didn't go far enough and more stringent measures may be necessary.

Broker, retirement groups make last-minute pleas to change tax legislation

Pass-through provisions are target of groups representing employee-model brokerage firms, as well as retirement plan advisers.

House and Senate reach tentative compromise for tax overhaul

Lawmakers still need to get a cost analysis of their agreement, so it's not yet definite, according to a source.

X

Subscribe and Save 60%

Premium Access
Print + Digital

Learn more
Subscribe to Print