Brokerages push for compensation following NYSE glitch - Bloomberg News

Virtu Financial

31/01/2023 23:05

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.
    The brokerages include Charles Schwab  SCHW.N  as well as
market makers Virtu Financial Inc  VIRT.O  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.
    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  ICE.N , 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)
 ((LavanyaSushil.Ahire@thomsonreuters.com;))