Business Maverick: NYSE plans to pay in full majority of claims after glitch

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Investors burned by last month’s malfunction on the New York Stock Exchange can recoup all of their losses, but only if their trades fit certain parameters. The rest may wind up with nothing.

The exchange operator told clients in recent days about its plans to cover all losses for orders posted or routed to NYSE, while loss-making trades triggered on other venues will not be covered, according to people with knowledge of the matter. In practice, three firms say NYSE will only reimburse roughly 60% of the claims filed. Others may qualify for more, one person said.

“In accordance with our rules, we expect to reimburse members 100% for all impacted orders that were received by the exchange,” a NYSE spokesperson said in an emailed statement on Monday. “This is part of the protections that come with trading on a transparent, public exchange.” Thousands of claims were submitted by retail brokerages including Charles Schwab and Robinhood Markets, as well as market makers Virtu Financial Inc. and Citadel Securities, the people said.

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