Reuters: Wells Fargo traded 8% lower on CBOE

By Reuters
Posted Oct. 21, 2010 at 6:06 p.m.

Shares of Wells Fargo & Co. traded on the CBOE Stock Exchange Thursday morning at a price about 8 percent below its price on other exchanges, Reuters data showed.

The action was notable because sudden drops in stock prices have become more scrutinized after the May 6 “flash crash,” when markets fell precipitously in¬† minutes.
A block of nine trades, which totaled 2,500 shares, traded at $23.87, whereas on other exchanges, the stock was trading between $25.86 and $25.87 per share.

The trades occurred shortly after the open at 9:31 a.m. EDT, the data showed.

“The CBSX received marketable limit orders that were executed and the trades have not been canceled,” said Gary Compton, spokesman at the CBOE.

The CBSX is owned by the Chicago Board Options Exchange  and a consortium of financial entities.

A marketable order is an order to buy or sell a stock immediately at the current best available price. A limit specifies a set number of shares.

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CBOE Holdings

CBOE Holdings Inc. claims it is the largest option exchange in the United States. The company, in addition to its core options trading business, provides marketplaces for trading futures contracts...

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