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    Nasdaq Gives Detail On Cause Of Last Week's Trading Halt

    Nasdaq OMX Group Inc. issued a deeper explanation for the technical problems that halted trading for three hours last week.

    As Reuters and Bloomberg explain it, Nasdaq's systems were overwhelmed when ARCA, the all-electronic exchange owned by the NYSE, deluged it with data. The vast amount of data exposed a "latent flaw" in the Nasdaq system that "receives all traffic on quotes and orders for stocks on the exchange."

    Bloomberg adds:

    "Today's report amplifies previous public statements by Nasdaq about what led it to freeze trading in about 3,300 stocks both on its own platform and others where equities change hands in America. The disruption underscored how quickly the integrity of the U.S. market, which has a value of about $20 trillion, can be subverted as orders to buy and sell shares are matched on more than 50 exchanges and alternative electronic venues.

    "'Any piece of software, even if it's run for 100 percent for 10 years, there's still flaws in it.,' Nasdaq CEO Robert Greifeld said in an interview with Bloomberg News. 'Whatever you have, it's a question of what unique set of circumstances happen to reveal that.'"

    In its statement, Nasdaq did call the unprecedented outage "unacceptable."

    The Wall Street Journal reports:

    "Nasdaq has changed the way it manages a key data feed to avoid another market freeze, people close to the exchange told the Journal. The people said they believe a repeat of the incident couldn't happen.

    "Nasdaq said Thursday its data feed providing price information for Nasdaq-listed securities failed last week when it couldn't switch to a backup system after being flooded with messages from an electronic exchange run by rival NYSE Euronext NYX +0.34% .

    "Nasdaq staff have since removed software that automatically reconnects other exchanges that are having problems connecting to the feed, the people close to the exchange said, and are managing such connections manually to better protect the feed from another breakdown."

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    Verdine White On 45 Years With Earth, Wind & Fire

    Forty-five years ago, the band “Earth, Wind and Fire” introduced audiences to a new kind of funk--one that fused soul, jazz, Latin and pop. Bassist Verdine White talks to guest host Derek McGinty about breaking racial boundaries in music and how the band is still evolving.

    NPR

    If War Is Hell, Then Coffee Has Offered U.S. Soldiers Some Salvation

    "Nobody can soldier without coffee," a Union cavalryman wrote in 1865. Hidden Kitchens looks at three American wars through the lens of coffee: the Civil War, Vietnam and Afghanistan.
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    Virginia's Own Tim Kaine Takes The Democratic Veepstakes

    We consider Democratic Sen. Tim Kaine's regional ties and the pros and cons of his vice presidential candidacy as the DNC gets underway.

    NPR

    Verizon Buys Yahoo For $4.8 Billion In Cash, Touting Gains In Mobile

    The deal comes more than a year after Verizon paid $4.4 billion to acquire AOL; as part of Verizon, Yahoo will join the same division AOL currently occupies.

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