BofA Unit Said to Lose Millions on Options Error
(same story here)
"Bank of America Merrill Lynch on Friday sustained a loss approaching
$10 million because of an error handling a controversial type of
stock-option trading, according to people with knowledge of the issue. An operational error within the banking group's Merrill Pro unit was
behind the problem, these people said, though clients of the business
weren't affected. The error has since been corrected, they said. Bank of
America Merrill Lynch is a division of Bank of America Corp.
BAC -0.87% ...The error was seen tied to "dividend trades" that have stirred
controversy in the options industry in recent years, according to
traders...Trading data released Friday morning indicated that about 24% of the
call options on the SPDR ETF weren't exercised, signaling a likely
"mistake or clearing error" in processing dividend trades in the
contracts, according to Henry Schwartz, president of Trade Alert. "
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