CBOE Holdings suffers small data issues on Futures Exchange

CHICAGO Tue Aug 27, 2013 12:55pm EDT

CHICAGO Aug 27 (Reuters) - Exchange operator CBOE Holdings Inc was hit on Tuesday with a number of problems affecting orders on its futures and options markets.

CBOE notified traders that the CBOE Futures Exchange was having issues with a limited number of canceled orders from Monday. The orders were executed between 7:10 a.m. and 7:30 a.m. CDT (1210-1230 GMT) on Tuesday, the CBOE said in a notice. After a review, CBOE said the trades in question will stand.

For a 13-minute period from 7 a.m. to 7:13 a.m. CDT, the data from the CBOE Streaming Market proprietary market data system on the CBOE Futures Exchange was not disseminating properly, CBOE said. But quotes were still available on other systems. A CBOE spokeswoman said it is investigating the cause of the problem.

In addition, some traders may have seen delays in complex orders Tuesday morning on the Chicago Board Options Exchange, the largest options market by volume, according to the notice. A complex order involves muliple legs of a trade. The issue was resolved and such orders could be entered on the CBOE, the notice said.

The difficulties came just one week after Goldman Sachs Group flooded U.S. equity options markets with erroneous trades because of a technical error. Goldman lost tens of millions of dollars because of the problem, a source said on Monday..

The options trading snafu was the first of what was a rough week for trading last week, as it was followed by a three-hour shutdown of the Nasdaq Stock Market due to connectivity issues on Thursday.

In April, a half-day outage at the Chicago Board Options Exchange exposed software problems that came about as it prepared to extend trading hours for futures contracts on the CBOE Volatility Index. CBOE at the time delayed the expansion of the trading cycle and now plans to add hours in late September. [ID: nL4N0FZ3IK]

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