Glitch led to erroneous options trades.
Reuters News reports that Goldman Sachs Group lost tens of millions of dollars after a computer glitch led to a flood of erroneous options trades last week, a source close to the matter said on Monday.
Last Tuesday, an upgrade of Goldman's internal system affected options on stocks and some exchange-traded funds with symbols beginning with the letters H through L, leading to trades vastly out of line with market prices.
Roughly 80% of the erroneous option-market contracts traded on NYSE Euronext's two option platforms NYSE Arca Options and NYSE Amex options were cancelled, according to a second source close to the situation.
The two platforms have collectively handled about 23% of equity and index options trading in August, according to data from OCC, formerly known as the Options Clearing Corp, which clears all U.S.-listed options.
NYSE Euronext said it completed a review and appeals process last week but declined to give further details.
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