* NYSE Euronext says clients had by 09:30 am EDT to appeal
decisions on errant trades
* CBOE Holdings says its review of specific trades is
CHICAGO Aug 21 U.S. options exchanges on
Wednesday wrapped up their review of a flood of erroneous
options trades that roiled the market the previous day, and were
linked to a computer trading glitch at Goldman Sachs Group
But it remained unclear how many trades were being canceled.
The exchanges can adjust prices or nullify, or "bust," any
trades they determine were made in error. Trades can also be
contested by customers.
On Tuesday, Goldman Sachs said its losses will not be
material from the technical problem that affected options on
stocks and some exchange-traded funds with listing symbols
beginning with the letters H through L.
Exchanges have their own rules for the appeal process.
Exchanges will typically delete a price that is wildly out of
range, but as it gets closer to the bid-ask quotes, then it is
less certain that the exchange will cancel it, said a source
familiar with the matter who declined to be identified.
Exchange operator NYSE Euronext has completed a
review of the erroneous trades on its two option venues NYSE
Amex Options and NYSE Arca on Tuesday and on Wednesday morning.
Its customers had until 9:30 a.m. EDT on Wednesday to appeal
the decisions made by the exchange operator, NYSE Euronext said
in a trader notice on Wednesday. The process involves the
examination of each trade and then the participants will be
notified if the trades will be canceled or adjusted in price.
NYSE Amex options exchange said "it may be some time"
before participants know that voided positions in some of those
trades are in the records of the OCC, which clears all listed
Exchange operator CBOE Holdings Inc said it had
completed its review of specific trades that took place on
Tuesday from 8:30 a.m. to 8:41 a.m. CDT on the Chicago Board
Options Exchange and the C2 options market. CBOE said the
affected parties have been notified. No other details were given
on a notice on its website.
Nasdaq OMX Group declined to comment.
The technical problem was related to Goldman's "trading
axis" - an internal system that monitor's the bank's inventory
to determine whether it should be a more aggressive buyer or
seller in the market, according to the source familiar with the