Fidelity says online brokerage orders were delayed, duplicated

Fidelity Investments said an undisclosed number of brokerage clients were affected Monday.
MAR 17, 2014
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)

Latest News

SEC to lose Hester Peirce, deepening a commissioner crisis
SEC to lose Hester Peirce, deepening a commissioner crisis

The "Crypto Mom" departure would leave the SEC commission with just two members and no Democratic commissioners on the panel.

Florida B-D, RIA owner pitches bold long-term plan to sell to advisors
Florida B-D, RIA owner pitches bold long-term plan to sell to advisors

IFP Securities’ owner, Bill Hamm, has a long-term plan for the firm and its 279 financial advisors.

Fintech bytes: Vanilla, Wealth.com forge new estate planning partnerships
Fintech bytes: Vanilla, Wealth.com forge new estate planning partnerships

Meanwhile, a Osaic and Envestnet ink a new adaptive wealthtech partnership to better support the firm's 10,000-plus advisors, and RIA-focused VastAdvisor unveils native integrations with leading CRMs.

Fiduciary failure: Ex-advisor who sold practice fined after clients lost millions
Fiduciary failure: Ex-advisor who sold practice fined after clients lost millions

A former Alabama investment advisor and ex-Kestra rep has been permanently barred and penalized after clients he promised to protect got caught in a $2.6 million fraud.

Why the evolution of ETFs is changing the due diligence equation
Why the evolution of ETFs is changing the due diligence equation

As more active strategies get packaged into the ETF wrapper, advisors and investors have to look beyond expense ratios as the benchmark for value.

SPONSORED Are hedge funds the missing ingredient?

Wellington explores how multi strategy hedge funds may enhance diversification

SPONSORED Beyond wealth management: Why the future of advice is becoming more human

As technical expertise becomes increasingly commoditized, advisors who can integrate strategy, relationships, and specialized expertise into a cohesive client experience will define the next era of wealth management