Bloomberg News

Amex Options Reviewing Large Number of Erroneous Trades (1)

August 20, 2013

The NYSE Amex Options exchange is reviewing “a large number” of erroneous transactions from the start of trading today, the company said in a statement.

Trades in tickers beginning with letters H through L in the first 17 minutes are being examined, the NYSE Euronext (NYX:US) unit said. Amex earlier reported “systems issues” and asked that orders from the platform be removed from marketwide price quotes, a system known as the national best bid and offer. Options venues run by Nasdaq OMX Group Inc., Bats Global Markets Inc. and CBOE Holdings Inc. (CBOE:US) routed orders away the exchange. Amex said systems were back to normal by 9:49 a.m. in New York.

“NYSE Amex Options is reviewing a large number of erroneous executions that took place this morning,” the exchange said in a note to traders. “As permitted by the rules, we anticipate that most of the impacted trades will be busted.”

CBOE, the largest options exchange, said it is reviewing all trades that occurred between 9:30 and 9:41 a.m. today. Nasdaq is reviewing options transactions from 9:30 to 9:47 a.m., according to its website.

NYSE Euronext briefly halted trading yesterday in about 40 exchange-traded funds and notes when the securities were added to a program aimed at curbing sudden price swings. They were set off during implementation of the protocol known as limit up/limit down that pauses securities when bid-ask spreads become too wide, NYSE Euronext said.

To contact the reporter on this story: Nikolaj Gammeltoft in New York at ngammeltoft@bloomberg.net

To contact the editor responsible for this story: Lynn Thomasson at lthomasson@bloomberg.net


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