All Things Newz

Brokerages push for compensation following NYSE glitch – Bloomberg News


Article content

Jan 31 (Reuters) –

Several retail brokerages have submitted thousands of claims to the New York Stock Exchange, seeking compensation for the losses incurred due to a trading glitch last week, Bloomberg News reported on Tuesday.

Article content

The brokerages include Charles Schwab as well as market makers Virtu Financial Inc and Citadel Securities, the report said, citing people with knowledge of the situation.

The claims, which were submitted by a Friday deadline under NYSE rules, are likely to exceed the $500,000 that the exchange operator sets aside to cover disruptions each month, the report added, citing the sources. The rules give NYSE until the end of Jan. 31 to evaluate the claims and decide how much to pay.

Article content

Individual investors are most the likely losers from the Jan. 24 glitch, who might recoup a fraction of their losses, if anything, under the NYSE liability rules, the report said, citing people familiar with the process.

Discussions are still underway and no final decision on the reimbursements has yet been made, according to Bloomberg News.

A glitch at the NYSE, which is owned by Intercontinental Exchange Inc, prevented the opening auctions for a slew of stocks last week, prompting widespread trading halts, confusion over whether orders were being filled at correct prices, and trades in more than 250 securities being busted.

The exact cost of the fallout is unclear, but the cost to brokers and retail traders is likely to be in the eight-figure range, a person at a major brokerage who spoke on condition of anonymity told Reuters last week. (Reporting by Lavanya Ahire in Bengaluru; Editing by Shailesh Kuber)


Source link

Related posts

U.S. lawmakers arrive in Taiwan with China tensions simmering

New Zealand to temporarily boost worker intake amid shortfall

Verizon’s internet services down for thousands of users – Downdetector