On January 8, 2009, New York Stock Exchange Amex Options Regulation filed with the Securities and Exchange Commission a proposed rule change amending Rule 975NY, which governs obvious errors and catastrophic errors. Presently, under Rule 975NY(a)(1), an obvious error will be deemed to have occurred when the execution price of an electronic transaction is above or below the theoretical price for the affected series by a specified amount. As amended, an obvious error determination may be made in situations where the bid/ask differential of the national best bid and offer for the affected series just prior to the erroneous transaction was at least two times the permitted bid/ask differential, pursuant to guidelines contained in the rule. The rule change became effective on filing.
Click here to read the NYSE Amex Options Regulation Regulatory Information Bulletin.