The New York Stock Exchange (NYSE) announced on Monday that it plans to make a reimbursement to investors who incurred losses from the trading glitch on January 24, which caused widespread confusion and a large number of trades were nullified.
NYSE’s members submitted a claim to compensate for their losses, and the exchange could have to face other claims from regulators, New York Stock Exchange-owner Intercontinental Exchange Inc. said. Also the retail brokerages submitted thousands of claims to the NYSE, including Charles Schwab (SCHW.N) and Virtu Financial (VIRT.O), Bloomberg reported last week.
An NYSE spokesperson said that according to the rules, it expected to reimburse members 100% for all affected orders. However, one of three sources told Bloomberg News that the bourse would pay only 60% of claims.
The first report about the exchang’s move, said that the NYSE informed clients in recent days that it would compensate all the loss for orders posted or routed to NYSE, but for loss making trades at other venues would not be covered, reported Bloomberg News.