NEW YORK, Feb. 28, 2007 (PRIME NEWSWIRE) -- Dow Jones Indexes today explained that a system problem beginning at 1:50 pm yesterday amid unusually heavy volume caused the 70-minute lag in correctly calculating the value of the Dow Jones Industrial Average (DJIA) and the subsequent downward spike in the reported index value when the problem was corrected at 3:00 p.m.
The Dow Jones Industrial Average Calculation chart is available at: http://media.primezone.com/cache/4127/file/3820.pdf
Michael A. Petronella, president, Dow Jones Indexes, said the problem arose in the system responsible for feeding market data into the calculation system. While the DJIA was still being calculated and disseminated, the calculator was not receiving the underlying component prices of the DJIA on a timely basis. Once the slow data feed problem was recognized, Dow Jones Indexes switched to a redundant market data system. This switch-over caused prices that were received during the latency period to be processed all at once, bringing the index immediately in line with its underlying component stocks. The attached graph depicts the index as it was published and how it would have looked without the system latency.
Mr. Petronella said all Dow Jones Indexes systems are fully redundant, which enabled it to move to another system with timely pricing. Dow Jones Indexes is continuing to investigate the latency issue to correct the root cause of the problem. Dow Jones Indexes expects normal operation of the DJIA today using its redundant market data system. Dow Jones Indexes has historically experienced a high degree of system reliability and is committed to taking the necessary steps to prevent this type of problem from occurring in the future.
Journalists may e-mail questions regarding this press release to PR-Indexes@dowjones.com or contact Sybille Reitz: +1-212-659-1265
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About Dow Jones Indexes
A full-service index provider, Dow Jones Indexes develops, maintains and licenses indexes for use as benchmarks and as the basis of investment products. Best known for the Dow Jones Industrial Average, Dow Jones Indexes also is co-owner of the Dow Jones STOXX indexes, the world's leading pan-European indexes, and together with Wilshire Associates, provides the Dow Jones Wilshire Global Index family, which is anchored by the Dow Jones Wilshire 5000 and covers more than 12,000 securities in 59 markets. Beyond equity indexes, Dow Jones Indexes maintains a number of alternative indexes, including measures of the hedge fund and commodity markets. Dow Jones indexes are maintained according to clear, unbiased and systematic methodologies that are fully integrated within index families. www.djindexes.com
Dow Jones Indexes is part of Dow Jones & Company (NYSE:DJ) (dowjones.com), which is a leading provider of global business news and information services. Its Consumer Media Group publishes The Wall Street Journal, Barron's, MarketWatch and the Far Eastern Economic Review. Its Enterprise Media Group includes Dow Jones Newswires, Factiva, Dow Jones Licensing Services, Dow Jones Indexes and Dow Jones Financial Information Services. Its Local Media Group operates community-based information franchises. Dow Jones provides news content to CNBC and radio stations in the U.S.