(Updates with comment from Nasdaq spokesman in the third
paragraph and with additional details throughout.)
By Jacob Bunge and Kaitlyn Kiernan
Nasdaq OMX Group Inc. (NDAQ) on Thursday halted trading in some
contracts for the rest of the day on its largest options exchange
due to "system issues," according to notices sent to traders.
Trading in some options contracts with symbols beginning with
the letter Z was halted on Nasdaq's PHLX options exchange, while
halts were called for certain contracts linked to the stocks of
companies such as International Business Machines Corp. (IBM) and
Netflix Inc. (NFLX).
"These options will be halted for the remainder of the day while
normal trading will continue on NASDAQ OMX PHLX for other symbols.
We will continue to communicate to customers when the issue is
resolved," said Robert Madden, spokesman for Nasdaq.
The issues began with options symbols beginning with Z at 9:48
a.m. EDT, according to a notice from traders. As of Thursday, PHLX
lists 20 stocks beginning with Z, including Zynga Inc. (ZNGA),
according to a list posted to the exchange operator's website.
Meanwhile, trading was halted in June expiration contracts on seven
other names, including IBM, Netflix, Sprint Nextel Corp. (S) and
the iShares Silver Trust (SLV) exchange-traded fund.
The options halted on PHLX are still available for trading on
some of the industry's other 10 exchanges.
The trading issues "must be minor," according to Joseph Cusick,
senior vice president of education at The Charles Schwab Corp.
subsidiary optionsXpress. Staff at the online brokerage hasn't
heard of any other issues at the exchange, he said.
The PHLX, formerly known as the Philadelphia Stock Exchange, is
the largest of the three U.S. options exchanges run by Nasdaq OMX.
The exchange executed 20% of all options contracts traded so far
this month, according to figures from industry clearinghouse
OCC.
Write to Jacob Bunge at jacob.bunge@dowjones.com and Kaitlyn
Kiernan at kaitlyn.kiernan@dowjones.com.
Subscribe to WSJ: http://online.wsj.com?mod=djnwires