The Taiwan Stock Exchange (TWSE) yesterday said that a computer glitch disrupted trading of Largan Precision Co (大立光) stock on Monday.
Largan’s soaring share price was the main reason for the false-positive that caused the main board’s price stabilization mechanism to switch on, the TWSE said, adding that affected investors would be eligible to contest their losses.
The price stabilization mechanism is deigned to suspend trades when trial matching of buy and sell orders produces a price movement greater than 3.5 percent, the TWSE said.
However, as the system was coded in 32 bits, it can only support a maximum value of 4,294,967,295. Largan shares yesterday rose to NT$4,150 per share, which translates to a 3.5 percent upper range of 4,295,250,000, exceeding the amount that can be supported by the system, the TWSE said.
The TWSE said that the glitch has been fixed, and that the system is now able to accommodate share prices as high as NT$999,999 (US$31,300).