CBOE Malfunction Shuts Down C2 Exchange for Under an Hour

CBOE Holdings Inc. (CBOE) halted trading on its C2 options exchange for about 47 minutes following a malfunction that prevented it from sending information to the equity derivatives industry’s main price feed.

The options venue was paused at 10:03 a.m. Chicago time and resumed at 10:50 a.m., according to a notice on CBOE’s website. Another bulletin said C2 had stopped sending data to the marketwide price feed at 9:45 a.m. Chicago time.

C2 is the smaller of U.S. options markets owned by CBOE Holdings, accounting for 1.9 percent of trading in August versus almost 29 percent at the Chicago Board Options Exchange. Its outage comes three weeks after Nasdaq OMX Group Inc. had to stop trading in the stocks it lists because of an error involving its data feed for equity prices.

Following the restart, a notice on CBOE’s website at 11:41 a.m. Chicago time said some customers had reported not receiving order acknowledgements and fill and cancel messages. The company is looking into the issue.

Today’s malfunction also briefly shut the CBOE Stock Exchange, which makes up less than 1 percent of the U.S. stock market.

Gail Osten, a CBOE spokeswoman in Chicago, declined to comment beyond the notices on the company’s system-status website.

To contact the reporter on this story: Sam Mamudi in New York at smamudi@bloomberg.net

To contact the editor responsible for this story: Nick Baker at nbaker7@bloomberg.net

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