U.S. options trading halted due to systems glitch
NEW YORK, Sept 16 (Reuters) – At least four major U.S. options exchanges halted trading in early afternoon on Monday due to system issues at the centralized Options Price Reporting Authority.
The OPRA is a computer system that disseminates options price quotes and completed trades from the exchanges and distributes these to market data vendors.
Nasdaq OMX PHLX Miami Options Exchange, CBOE Holdings and C2 electronic exchange were all halted.
CBOE confirms trading restored after glitch
Published: Monday, 16 Sep 2013 | 2:11 PM ET
Trading was restored in options at the CBOE and New York Stock Exchange after an earlier glitch halted trading. At least four major U.S. options exchanges reported problems in the early afternoon on Monday due to system issues.
Options trading was halted on all the major U.S. exchanges at 1:40pm ET because of an apparent quote dissemination problem related to OPRA, a so-called utility for the industry operated by the 11 major exchanges.
Between 12:30 ET and 1:40 ET, inaccurate quotes were being sent to vendors like online brokerages. OPRA stands for the Options Price Reporting Authority and is run jointly by the CBOE, AMEX, ARCA, BATS, BX, BSE, C2, ISE, MIAX, Nasdaq and PHLX.
Nasdaq said it was working to restore trading as of 2:10.
The NYSE explained that there was a processing error at SIAC, which it owns. The cause of the outage was being investigated. SIAC operates OPRA, but the underlying technology is not owned by the NYSE.
“All of a sudden my P&L went to zero and then I noticed that all the options prices went to zero,” said Jon Najarian, co-founder of TradeMonster.com. “Then word went out officially at 1:40 that trading was halted. There were probably minutes there that people were looking at quotes that were absolutely wrong.”
At 1:57 ET quotes started updating again from most exchanges for major stocks like Apple. The CBOE sent a message alert to traders that the linkage issue to OPRA had been resolved. Other exchanges have sent messages saying that quotes on their exchanges will start operating normally.
The options halt is the second major glitch impacting securities prices in the last month.
U.S. securities regulators said they were monitoring the situation.