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NYSE’s Haywire Trading Spurs Crush of Demands for Compensation

  • Claims are likely to exceed liability pool that covers losses
  • Retail investors poised to be hurt the most by shortfall
The New York Stock Exchange on Nov. 9, 2022.
The New York Stock Exchange on Nov. 9, 2022.Photographer: Michael Nagle/Bloomberg

Investors hurt when a New York Stock Exchange malfunction sparked wild swings in stock prices are trying to recoup their losses. There’s reason to doubt they’ll get all their money back.

Losses incurred during NYSE’s system glitch last week could amount to millions of dollars, and thousands of claims have been submitted by retail brokerages including Charles Schwab Corp. and Robinhood Markets Inc., as well as market makers Virtu Financial Inc. and Citadel Securities, according to people with knowledge of the situation.