At 10:45:26AM ET, a single matching engine handling symbol range A-BFZZZ encountered a software bug related to IPO auctions which rendered open orders in this symbol range inaccessible. BZX Exchange sent notice at 10:48:41AM ET that BATS staff was investigating system issues in trading of symbols in the range of A through BFZZZ. Additionally, the IPO auction for securities of BATS Global Markets, Inc. ("BGM") did not successfully print and continuous book trading of BGM stock on the BZX Exchange system did not begin as expected.
BATS immediately requested all quotes in the affected range for BZX Exchange be removed from the consolidated tapes. Around 11AM ET, the BATS Trade Desk noticed BYX Exchange was continuing to witness crossed markets from stale quotes in UTP symbols on the BZX Exchange. BYX Exchange declared Self Help vs. BZX Exchange at 11:07:04am ET and again contacted the UTP SIP to pull quoting for symbols in the affected range. BATS confirmed the UTP SIP successfully pulled BZX Exchange quotes at 11:27:01am ET. The stale BZX quotes seen in BYX were the cause of three clearly erroneous trades in AAPL which were cancelled between 11:49am and 12:34pm ET.
Regarding the initial print of BGM stock, BZX Exchange submitted the IPO auction print to the consolidated tape at 11:14:18am ET.
Prior to noon ET, BATS staff notified members that the system would be available for trading all securities in the affected range except for BGM at noon ET. In connection with attempting an orderly reopening of the BGM stock, BATS staff communicated to members that it would shutdown trading for an emergency window period between12:40-12:50PM ET in order to deploy an emergency patch. BZX Exchange cancelled all open orders in this symbol range prior to the orderly shutdown and during this period deployed the emergency patch. The shutdown and commencement of trading in this symbol range was orderly and occurred at the communicated timeframes. BATS staff ultimately made a decision not to reopen the BGM stock. Once the decision was made, the original IPO print was cancelled, individual executions were broken for the day, and notice was submitted to all affected parties.
BATS expects all systems to operate normally on Monday morning and the BGM stock (symbol BATS) will not be trading.
Dear Member,
At 10:45:26AM ET, a single matching engine handling symbol range A-BFZZZ encountered a software bug related to IPO auctions which rendered open orders in this symbol range inaccessible. BZX Exchange sent notice at 10:48:41AM ET that BATS staff was investigating system issues in trading of symbols in the range of A through BFZZZ. Additionally, the IPO auction for securities of BATS Global Markets, Inc. ("BGM") did not successfully print and continuous book trading of BGM stock on the BZX Exchange system did not begin as expected.
BATS immediately requested all quotes in the affected range for BZX Exchange be removed from the consolidated tapes. Around 11AM ET, the BATS Trade Desk noticed BYX Exchange was continuing to witness crossed markets from stale quotes in UTP symbols on the BZX Exchange. BYX Exchange declared Self Help vs. BZX Exchange at 11:07:04am ET and again contacted the UTP SIP to pull quoting for symbols in the affected range. BATS confirmed the UTP SIP successfully pulled BZX Exchange quotes at 11:27:01am ET. The stale BZX quotes seen in BYX were the cause of three clearly erroneous trades in AAPL which were cancelled between 11:49am and 12:34pm ET.
Regarding the initial print of BGM stock, BZX Exchange submitted the IPO auction print to the consolidated tape at 11:14:18am ET.
Prior to noon ET, BATS staff notified members that the system would be available for trading all securities in the affected range except for BGM at noon ET. In connection with attempting an orderly reopening of the BGM stock, BATS staff communicated to members that it would shutdown trading for an emergency window period between12:40-12:50PM ET in order to deploy an emergency patch. BZX Exchange cancelled all open orders in this symbol range prior to the orderly shutdown and during this period deployed the emergency patch. The shutdown and commencement of trading in this symbol range was orderly and occurred at the communicated timeframes. BATS staff ultimately made a decision not to reopen the BGM stock. Once the decision was made, the original IPO print was cancelled, individual executions were broken for the day, and notice was submitted to all affected parties.
BATS expects all systems to operate normally on Monday morning and the BGM stock (symbol BATS) will not be trading.
BATS Trade Desk 913.815.7001 tradedesk@batstrading.com www.batstrading.com/alerts www.batsoptions.com/alerts