The world's most famous stock exchange has malfunctioned. This caused rapid fluctuations in share prices and left traders in shock. They are demanding the losses incurred as a result of the incident back. These can run into millions of dollars.
The New York Stock Exchange (NYSE) reacted to the error on Monday, announcing that the incident halted thousands of trades last month and caused widespread confusion. The NYSE acknowledged the error and promised compensation for investors.
Intercontinental Exchange Inc, which owns the New York Stock Exchange, said earlier this month that NYSE members had filed claims for compensation for losses. The NYSE expects to reimburse members for 100% of all affected orders received by the exchange, its spokesman said in an e-mailed statement.
In recent days, Bloomberg News reported that the NYSE has informed clients that it will cover all losses for orders placed or routed on the NYSE, but not for losses by other trading venues. One of the three sources told Bloomberg News that the exchange will cover about 60% of the claims. Bloomberg reported last week that brokers such as Charles Schwab and Virtu Financial have filed thousands of claims with the NYSE seeking compensation for losses incurred on Jan. 24. The compensation announcement also appeared on Reuters' Twitter feed.
