Cboe Wants to Ignore Years of Bungling How It Charged Traders
(Bloomberg) -- U.S. stock-market operator Cboe Global Markets Inc. wants to ignore years of messing up customer billing.
The Chicago-based company, which is one of the three big operators of American equity exchanges, said in a regulatory filing on Tuesday that it discovered in October it had over-billed some traders and under-billed others for years.
Instead of untangling the mess, cutting checks to some and demanding payments from others, Cboe asked the Securities and Exchange Commission for permission to revise its rules so it can forget about all the mistakes before July.
It’s easy to empathize with the Cboe accountants who don’t want to go to all the trouble. U.S. stock exchanges are built atop a complicated system of charging fees to some traders and paying out rebates to encourage others to provide liquidity. And, anyway, Cboe says venturing back before July would hurt more of the exchange’s customers than it would help.
“More members owe the Exchange more than a de minimis amount of money than the number of Members the Exchange owes more than de minimis amount of money to,” Cboe said in the filing.
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