Daily News

Exchange Outage Y2K-Related

By Adam Creed, Newsbytes.

January 30, 2000

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The failure of a computer system of the Hong Kong Futures Exchange (HKFE) on January 4, 2000 was Y2K-related, according to a Hong Kong Government official. The statement was made in response to questions by Sin Chung-kai in the SAR's Legislative Council on Wednesday.

The computer system controlling the options pricing system of the open outcry system for the trading of Hang Seng Index options contracts encountered date-related problems shortly after the opening of the market on January 4.

The system made erroneous calculations of the number of days between the trading day and the expiration dates of each series of options traded. The problem caused difficulties with accuracy and reference prices used in trading. Once the problem was discovered, the HKFE had to manually compile theoretical options prices.

An automated workaround to the problem was implemented before the opening of the second trading session on that day.

According to a written reply to questions in the Legislative Council as to why the public had not been informed of the incident, Hong Kong Secretary for Financial Services, Rafael Hui, said that the HKFE had decided the incident was not critical, it was not immediately known if it was Y2K-related and that it had been quickly corrected.

"As part of the normal process in managing their operations, the market operators of the major shared financial systems in the securities and futures industry have set up comprehensive procedures and contingency plans to deal with computer problems which may occur to their systems," read the response. "In the event of a computer breakdown, the affected organization would follow its own procedures and contingency plans to deal with the problem."

"Where the incident is critical, the organization will consider issuing a separate press release to inform the public," said the secretary. "Each organization's management is responsible for making the decision and the corrective measures to remedy the problem as well as handling the publicity surrounding the matter."

Reported By Newsbytes.com

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-- Patrick Lastella (Lastella1@aol.com), February 02, 2000

Answers

Good post Patrick. Thank you.

-- Dee (T1Colt556@aol.com), February 02, 2000.

Third old post today Patrick!! January 30 is NOT CURRENT! This article in particular was up 2-3 times as seperate threads, the day it came out. Thanks though.

>"<

-- Squirrel Hunter (nuts@upina.cellrelaytower), February 02, 2000.

Hmmm...

A major exchange has a Y2K problem...

Workaround done in a day. Barely a ripple in the world markets secondary to this. No crash. No TEOTWAWKI.

'Bout what I predicted for your average Y2K problem. How about the rest of you. Mr Yourdon? Mr deJager? Mr North? Doc Schenker?

Jump in anytime.

-- I'mSo (lame@prepped.com), February 02, 2000.

Yeah, I'mSo ... and they got that MD-80 down safely too, no casualties!

The second one that is. 'Bout what you expected?

>"<

-- Squirrel Hunter (nuts@upina.cellrelaytower), February 02, 2000.

Mr Squirrel,

What I expect is that tragedies in this world will continue, and posters on this board, without a shred of evidence, or a single moment of critical thinking, will attribute them to Y2K.

I cannot help you, sir.

-- Imso (lame@prepped.com), February 02, 2000.

Will galdly do without your help. The first component of my critical analysis of Y2K reporting is that all insurance companies have expressly exempted Y2K-arising complication from coverage, and CEO's and CIOs are also wise enough to know their stock prices would plummet upon admission of internal snafus. So first part of critical thinking is recognition that you're operating at a "data deficit" or information vaccuum, and few if any stories will report a system failure as Y2K. This one is a rare exception that proves the larger practice.

>"<

-- Squirrel Hunter (nuts@upina.cellrelaytower), February 02, 2000.

Mr Squirrel:

Perhaps the first part of critical thinking is having any data at all that support an hypothesis. Perseverating in believing their are coverups for systems about to bring down their companies from unreported internal snafus is just, well, perseveration. Hundreds of thousands of companies; millions of employees; scattered reports of problems; the usual reluctance to broadcast negative stories about internal malfunctions--whatcha got there is not some Y2K coverup, but business as usual, pre- and post-Y2K.

I don't think a critical thinker would believe that many employees in that many companies could cover-up that many problems. But the good thing is, what the hey: If you are right, stuff will happen REAL SOON NOW.

Good day. And stop desecrating lost lives in the interest of furthering your witless conspiracy paranoia until there is evidence that Y2K caused the problem.

-- I'mSo (lame@prepped.com), February 03, 2000.