STOCK MARKET WATCH -- Monday, 16 September 2013

[Demeter]

50. CBOE briefly halts trading on two exchanges

http://www.reuters.com/article/2013/09/13/c2-options-halt-idUSL2N0H90YP20130913

Trading on two of CBOE Holding Inc's securities exchanges was halted for more than half an hour on Friday due to unidentified technical problems, becoming the latest black eye for U.S. exchange-operators who have suffered a series of outages and malfunctions this year. CBOE Holdings said it stopped trading for 47 minutes on its C2 electronic Options exchange and for 33 minutes on the CBOE Stock Exchange. Trading resumed on C2 at 10:50 a.m. CDT (1550 GMT) and on the CBOE Stock Exchange at 10:35 a.m. CDT, according to CBOE's system status page on its website. Earlier, the company suffered problems affecting the routing of orders, including the dissemination of quotes, on certain stock option classes on C2. Those issues were resolved by 9:33 a.m. CDT, according to the website.

CBOE, which operates the Chicago Board Options Exchange, the largest U.S. options market, said it was investigating the problems. The outage came one day after U.S. stock exchanges agreed with securities regulators to implement changes in how they respond to major disruptions such as the Aug. 22 software failure at Nasdaq that shutdown trading for three hours. Friday's problem, however, was no where near the magnitude of the Nasdaq outage last month, which idled roughly a third of the U.S. stock market.

C2, which offers equity options, has garnered only a small percentage of total U.S. options volume since its launch in October 2010. Because equity options are listed on 11 other venues, traders can shift their business to other markets, including C2's sister exchange, the Chicago Board Options Exchange. So far this year, total option market share at C2 through August is 1.89 percent, according to OCC, which clears all listed options. The Chicago Board Options Exchange has 25.36 percent of total market share. CBOE Stock Exchange market share through August this year is 0.43 percent, trading an average of 26.9 million shares per day, according to CBOE....