Another Day, Another Glitch

Oct 30, 2013

Actually, there were two unrelated glitches in the options market today, and one yesterday. First, ISE had a technical issue in a software configuration interrupted its price feed into OPRA this morning. Around this same time, the CBOE’s benchmark volatility index experienced erratic price gyrations on three separate occasions.

Yesterday’s data feed disruptions at NASDAQ, it turns out, resulted from a “human error” related to an operational function.

Coincidentally, yesterday morning WSJ’s Paul Vigna commented on how common such technical failures are, and how little impact they have on the markets. (See: “Exchange ‘Glitches’ Are a Feature of the System, Not a Bug”) But he also points out in a quote from Ophir Gottlieb of LiveVol that “One time is a random event, the second time it may be a coincidence and the third time is proof of weakness.”

Meanwhile, the Securities and Exchange Commission is losing patience. Last week, the SEC’s Louis Aguilar told an audience that he would like to impose a strict version of the “Regulation Systems Compliance and integrity” or Reg, SCI which was proposed in March, targeting exchanges, clearing agencies, self-regulatory bodies and dark pools. A Reuters story, said that SEC chair Mary Jo White would like to finalize a rule quickly.

Where this goes and what gets accomplished is still undecided. But more glitches in the meantime will keep it on the SEC’s radar.

John Lothian Newsletter

We visit more than 100 websites daily for financial news (Would YOU do that?)

“John Lothian and Company… our industry intelligence.”

Rick Lane

CEO, Trading Technologies

Past Options Newsletters

Pin It on Pinterest

Share This Story