What can happen if one of the exchange stops due to technical glitch like in the case of NYSE?

NYSE glitch that halted trading for 4 hours had me thinking. what would happen if it occurred to only one of the exchange?

The prices of every stock is almost equal in both the exchanges. Now after the glitch in one exchange, the price of a share would change in the other exchange. So, after the glitch is resolved, what would be the price of the share? Will it be matched to the other exchange that was working?


Zeel (NSE) is 361.20

Zeel (BSE) is 361.15

Glitch at NSE.

Zeel (BSE) moves to 370 and simultaneously NSE error is resolved or it opens directly on the next day.

What will be the price of Zeel (NSE). If prices are not matched, arbitrageurs would make a killing !!!

Yep, prices will match immediately and the reason why prices will match is because of the same arbitrageurs. Today most professionals use high frequency trading systems to execute arbitrage strategies, so within a fraction of a second, this difference will evaporate.

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