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Goldman Sachs technical fault causes erroneous U.S. option trades

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A flood of erroneous trades hit U.S. equity options markets on Tuesday as they opened for business when Goldman Sachs Group sent orders accidentally because of a technical error, the latest trading problem to hit the options market this year. Major options exchanges including platforms run by CBOE Holdings, Nasdaq OMX Group Inc and NYSE Euronext said they were reviewing the trades, sent in roughly the first quarter hour of trading and affecting options on shares with listing symbols beginning with the letters H through L. Exchanges have the option to adjust prices or nullify, or "bust," the trades if they are determined to have been made in error. NYSE Euronext's NYSE Amex Options market said it anticipates most of the trades will be canceled. Goldman Sachs said in a statement the firm does not face material loss or risk from the issue. The firm declined to comment further. A person familiar with the problem, who declined to be identified, said the cause was a computer glitch

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