“The U.S. securities regulator is focusing its investigation into the Nasdaq outage on why a system for distributing stock prices and quotes was not robust enough, and believes a spat between exchanges is a distraction, a source familiar with the matter said on Tuesday.

“Nasdaq, a unit of Nasdaq OMX Group Inc, halted trading in the thousands of shares listed on its platforms on Thursday, after finding that a system that consolidates stock prices – the Securities Information Processor, or SIP – wasn’t working properly.

“The blackout was preceded by connectivity issues between the SIP and Arca, the electronic platform of NYSE Euronext (NYX.N). Reuters reported on Monday the two rivals are now blaming each other for the debacle.”

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