The Standard & Poor’s 500 Index and Nasdaq Composite Index capped their worst week since 2012, with stocks most beloved by hedge funds plunging amid concern valuations have climbed too high as earnings season starts.
Canceling trades in stocks that fell 60 percent during last week’s plunge reflected a policy to erase pricing “errors,” said Eric Noll , executive vice president for transaction services at Nasdaq OMX Group Inc.
The cost to protect against losses on corporate bonds in the U.S. climbed to a more than six-week high as speculation swelled that the Federal Reserve will trim its bond purchases next month. Western Union Co. sold $250 million of two-year floating-rate notes.
Competition among nine U.S. options exchanges following regulatory changes aimed at saving money for investors is causing some of the biggest participants to reduce their trading, a Tabb Group LLC report said.