NYSE plans to compensate brokerage claims after glitch
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 and Virtu Financial, Bloomberg reported last week. – Reuters