NYSE Said to Plan Rule Change for Voiding U.S. Options Orders

NYSE Euronext (NYX) has submitted a rule filing to the U.S. Securities and Exchange Commission that modifies its guidelines for dealing with erroneous trades in the U.S. options market, according to a person familiar with the matter.

The proposal is part of an attempt to harmonize rules among the nation’s options markets, said the person briefed on the matter, who asked to not be named because the document is confidential. Rich Adamonis, a spokesman for New York-based NYSE Euronext, declined to comment.

When Goldman Sachs Group Inc. sent mistaken trades to U.S. options markets on Aug. 20, rules for canceling or upholding the transactions differed among exchanges. In a Sept. 12 meeting, SEC Chairman Mary Jo White told exchange owners to develop uniform guidelines for options order cancellations. The change NYSE Euronext is now proposing has been under consideration for months, according to the person familiar with the matter.

The Financial Times reported NYSE Euronext’s proposal earlier.

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

Press spacebar to pause and continue. Press esc to stop.

Bloomberg reserves the right to remove comments but is under no obligation to do so, or to explain individual moderation decisions.

Please enable JavaScript to view the comments powered by Disqus.