NYSE Cancels Mistaken Options Trades on Dow Average, S&P 500Nick Baker
NYSE Euronext canceled some options trades tied to three of the most-watched U.S. equity indexes after determining they were mistakes.
NYSE reviewed transactions executed between 4:12 p.m. and 4:15 p.m. New York time for contracts linked to the Dow Jones Industrial Average, Standard & Poor’s 500 Index and Russell 2000 Index as well as Citigroup Inc., according to messages sent by the exchange operator. Fewer than 150 trades were voided, spokesman Eric Ryan said in an e-mail.
The nation’s stock and options markets are working toward improving procedures and technology in response to breakdowns that prompted U.S. Securities and Exchange Commission Chairman Mary Jo White on Sept. 12 to demand they collaborate. Exchanges are making progress toward that goal, CBOE Holdings Inc. President and Chief Operating Officer Edward Provost said on Oct. 4. His company owns the largest U.S. options market.
White met with exchange executives after a programming error caused Goldman Sachs Group Inc. to send unintentional stock options orders in the first minutes of trading on Aug. 20, pushing prices on dozens of contracts to a dollar each, according to a person briefed on the matter and data compiled by Bloomberg.
Ryan said NYSE will continue to update customers on today’s mistaken trades.