Schwab Criticizes NYSE Over System Failure That Roiled Trading

Charles Schwab Corp., the brokerage catering to retail investors, said it’s disappointed by the New York Stock Exchange’s handling of a technical mistake that roiled Tuesday’s trading, and that regulators should reconsider the risks of putting retail orders through an auction model.

“Unfortunately, the NYSE has not owned up to their full responsibility and retail investors will have to go through a lengthy process to correct orders, with no guarantee of a reasonable outcome,” spokesperson Mayura Hooper said in an emailed statement.

The exchange on Wednesday acknowledged a manual error had whipsawed prices for some of its biggest listings, citing work that was being done on its disaster recovery program.

Stocks for hundreds of companies were affected and trades were canceled after the wild market swings. The NYSE has since restored normal operations.

“If Exchanges will not accept accountability when they make an obvious mistake, it further heightens our concerns that routing even greater levels of retail orders to the exchanges will dramatically reduce the quality of the investing experience for America’s retail investors,” Hooper said.