Nasdaq will cancel trades in some exchange traded funds (ETFs) launched yesterday by Scottrade subsidiary FocusShares that saw their share prices plunge, Reuters reported Thursday.
Carrie Hibbs, a spokeswoman for FocusShares, in a telephone interview Thursday said the exchange was working to bust erroneous trades. She said ETF shareholders will not see the value of their shares impacted.
ETFs were put in a negative spotlight in the confusion of the May 2010 flash crash when many funds plunged in value and later had trades cancelled.
FocusShares on Wednesday introduced 15 ETFs based on Morningstar indexes.
Some FocusShares ETFs saw their share prices drop 98% with those cancelled trades occurring in the first half-hour of trading Thursday, Reuters reported.