US market operator Direct Edge has amended the rules by which participants can apply for reimbursement when an error occurs in the routing or executing of a trade due to exchange errors.
In a statement, Direct Edge said it had extended the deadline for its members to submit claims for reimbursement when an error occurs on either of its two order books from 12pm Eastern Time a day after execution, to 4pm two trading days after the date of execution. The changes took effect on Wednesday.
The exchange will also accept claims for losses relating to orders routed by the exchange through its order routing broker-dealer, DE Route, to other trading venues that experienced an exchange-level error.
Direct Edge said it would pass on any compensation paid from a third party execution venue to participants seeking reimbursement for losses incurred by such an error.
However, the trading venues to which the exchange operator routes orders may impose their own deadlines for compensation requests when routing or execution errors take place.
The exchange operator said it was the responsibility of its members to submit claims in a timely manner so they can be forwarded to third party execution venues to avoid missing their deadline window.