(Bloomberg) -- A software error at MEMX LLC prompted exchanges including NYSE, Nasdaq and Cboe to temporarily suspend routing to the venue.

The “latent software error” caused the Members Exchange to incorrectly accept orders and send pricing information, the company said in an update to market participants late on Tuesday. That issue, which occurred from 6:50 a.m. to 6:54 a.m. in New York, caused 355 quotes across 40 stocks to be sent to the so-called Securities Information Processors, or SIPs, which gather the quotes into a single data feed.

Earlier on Tuesday, the issue at MEMX LLC was cited by exchanges including NYSE, Nasdaq and Cboe which paused routing to the venue with some declaring “self-help” — a remedy for when venues can’t reach another exchange and subsequently remove their quotes. The three equity exchanges resumed routing before the market opened.

Prior to starting the pre-market session, MEMX said it did “multiple systems checks to ensure that no residual effects remained.” The session was also adjusted to begin at 8:45 a.m. and proceeded as normal, according to the update.

MEMX’s incident was not related to the industry’s move to T+1 this week, according to a person familiar with the matter who asked not to be identified discussing a private matter.  

The exchange has since adopted what it called corrective procedures to prevent the error from reoccurring. It doesn’t expect further impact related to the issue.

MEMX was founded in 2019 by banks and market makers trying to counter the rising data and connectivity fees charged by US stock exchanges. It’s backed by firms including Bank of America Corp., Morgan Stanley, JPMorgan Chase & Co, Goldman Sachs Group Inc. and BlackRock Inc. 

(Updates with details of software error from first paragraph.)

©2024 Bloomberg L.P.