On Thursday afternoon, CBOE Holdings, Inc. (NASDAQ: CBOE) issued the following statement about the morning’s trading issue:
This morning, a system issue delayed the opening of options trading at Chicago Board Options Exchange (CBOE) from 8:30 a.m. until 11:50 a.m. CT. Trading at C2 Options Exchange (C2), CBOE Futures Exchange (CFE) and CBOE Stock Exchange (CBSX) opened as scheduled. The malfunction that impacted CBOE was an internal systems issue and not the result of any outside influence. The issue, which affected validation of certain orders and the communication of cancel/fill reports, has been corrected.
So how did the outage affect trading for the day??Here’s what the outage looked like as it impacted the VIX, which became available around 10 a.m.
VIX via Fact Set Research
For the day, the VIX closed at 13.62, up 0.07%.
According to Bloomberg, trading resumed in the?Standard & Poor?s 500 Index products at 12:50 p.m. eastern time with the rest of the exchange opening at 1 p.m. as opposed to its usual 9:30 a.m. start time.?
Ed Provost, CBOE chief business development officer, said the cause for the outage was software malfunction not from a hacker and that??we had some technology problems this morning. It?s a software glitch and we?ll identify the problem.?
CBOE has dealt with halted trading before with its most recent one coming in November 2007 when its?trading systems had malfunctioned, ceasing trading for approximately an hour, according to Bloomberg.?