BATS Global Markets Inc. stated on January 9 that glitches in its system over the last four years may have been responsible for price executions that resulted in securities violations in hundreds of thousands of transactions.
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The SEC has a rule that mandates orders to go to the best bid or offer in the market. The systems glitch caused some orders to be executed at prices equal to or less than the so-called best national bid and offer price.
BATS says the price differences amounted to less than $500,000 and it had received no customer complaints as a result.
But the issue is the latest in a series of technical problems that are undermining investor confidence in the markets.
The BATS issue
is also another example of how glitches in the system can go undetected for long periods of time.
The problems BATS cited go back as far as October 24, 2008. BATS could be subject to a regulatory penalty as a result.