NYSE plans to compensate brokerage claims after glitch

Virtu Financial

07/02/2023 02:23

Feb 6 (Reuters) - The New York Stock Exchange (NYSE) on
Monday said it plans to reimburse investors who incurred losses
due to a trading glitch last month that caused widespread
confusion and resulted in thousands of trades being nullified.
    NYSE members had submitted compensation claims for losses,
and the exchange could potentially face additional claims from
regulators, New York Stock Exchange-owner Intercontinental
Exchange Inc said earlier this month. 
    "In accordance with our rules, we expect to reimburse
members 100% for all impacted orders that were received by the
exchange," an NYSE spokesperson said in an emailed statement. 
    "This is part of the protections that come with trading on a
transparent, public exchange." 
        
    Bloomberg News
    , which first reported the exchange's move, said the NYSE
has notified clients in recent days that it will cover all
losses for orders posted or routed to NYSE, while loss-making
trades triggered on other venues will not be covered.
  
        The bourse will only reimburse roughly 60% of the claims
filed, one of three sources told Bloomberg News. 
  
    Retail brokerages submitted thousands of claims to NYSE,
seeking compensation for the losses incurred due to a trading
glitch on Jan. 24, including brokerages like Charles Schwab
 SCHW.N  and Virtu Financial  VIRT.O , Bloomberg reported last
week.    
 (Reporting by Lavanya Ahire and Jyoti Narayan in Bengaluru;
Editing by Nivedita Bhattacharjee)
 ((LavanyaSushil.Ahire@thomsonreuters.com;))