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Unexpected CBOE Shutdown Caused By Unexpected Glitch

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This may surprise you, but CBOE CEO Bill Brodsky wasn't exactly predicting yesterday's little incident. Or, as he'd prefer to think of it, "a learning experience."

The software glitch that shuttered the Chicago Board Options Exchange for several hours on Thursday "cropped up unexpectedly," CBOE Holdings CEO Bill Brodsky told CNBC television on Friday.

And that's pretty much all he's got to say about the matter.

Brodsky told CNBC that CBOE knows what the problem is, but would only describe it as an "internal issue." He said it was not related to a software upgrade.

But let's not focus on yesterday's minor four-hour snafu. The CBOE is back up and running, and almost at full strength.

The largest U.S. stock-options exchange by volume experienced an early problem, as one series of options contracts was briefly halted by what CBOE called a "system issue," but traders said this was a common occurrence and didn't cause wider disruption….

The brief halt Friday affected buying and selling in one series of options on Goldman Sachs Group shares. It lasted for three minutes and was described by traders as a run-of-the-mill hitch seen often on options platforms.

CBOE CEO Brodsky Says Trading Problems 'Cropped Up Unexpectedly' [Reuters via NYT]
Options Trading Resumes as Normal on CBOE [WSJ]


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