Market Extra: Charles Schwab blasts NYSE over stock-trading glitch

by | Jan 26, 2023 | Stock Market

Retail brokerage Charles Schwab late Wednesday publicly criticized the New York Stock Exchange for its handling of a trading glitch this week that triggered wild price swings, numerous trading halts and thousands of busted trades. “We are disappointed with the way the NYSE handled their system failure [Tuesday], which they admitted was the result of their own manual error. Unfortunately, the NYSE has not owned up to their full responsibility and retail investors will have to go through a lengthy process to correct orders, with no guarantee of a reasonable outcome,” Schwab
said in a statement.

The NYSE on Wednesday said the root cause of the Tuesday morning chaos was a “manual error” involving the exchange’s disaster-recovery program. The NYSE said that as a result of the glitch, trading in 2,824 NYSE-listed securities began Tuesday without attempting to conduct an opening auction. That led to erroneous prices, with the exchange determining that approximately 4,341 trades in 251 symbols should be busted. Dozens of stocks were briefly halted for volatility after Tuesday’s opening bell. Several stocks showed large opening moves, triggering circuit breakers that automatically halted trade in individual stocks. The halt hit a number of high-profile names, including Morgan Stanley

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