NYSE probe into irregular trading completed
August 2 , 2012
The New York Stock Exchange (NYSE) has completed a probe into "irregular trading" following a series of out of the ordinary swings in some stocks.
The NYSE identified 140 stocks with higher-than-normal trading volumes, including stocks such as Citigroup and American Airlines.
They cancelled trades on six stocks.
"The NYSE and NYSE MKT are currently reviewing irregular trading identified by our people and systems" in 140 stocks between 9:30 am EST and 10:15 EST on Wednesday,” the exchange said.
The stock exchange said it would cancel trades above or below certain prices on Wizzard Software, China Cord Blood, Reaves Utility Income Fund, E-House (China) Holdings, American Reprographics Company and Quicksilver Resources.
Media reports suggest a trading algorithm, required for calculation and data processing, used by the brokerage Knight Capital may have been responsible for the stock movements.