Bank of America Merrill Lynch loses $10 mln over "operational error"

Bank of America Merrill Lynch loses $10 mln over

PanARMENIAN.Net - Bank of America Merrill Lynch sustained a loss of nearly $10 million due to an "operational error" in handling of stock option trades known as dividend trades by the company's Merrill Pro unit, Reuters reported citing the Wall Street Journal.

The unit's clients were not affected and the error has been corrected, WSJ said, citing unnamed sources familiar with the matter.

Bank of America Merrill Lynch is a division of Bank of America Corp (BAC.N).

Dividend trades involve placing trades a day before shares of a company or exchange traded fund issuer go "ex-dividend," seeking to capitalize on a typical drop in share prices after that date.

Trading data released September 21 showed that nearly a quarter of call options on the SPDR exchange-traded fund were not exercised, suggesting a likely error in processing dividend trades in the contracts, the newspaper said.

 Top stories
Sisi spoke by phone to French President Francois Hollande and Italian Prime Minister Matteo Renzi about the Libya situation.
U.S. Secretary of State John Kerry denied any rift with EU leaders, saying, "I keep hearing people trying to create one.
"As two neighbors, Iran and Russia have common viewpoints toward political, regional and global issues," Dehghan said.
At least 2,500 and possibly up to 5,000 suspects have traveled from Europe to conflicts in Syria and Iraq, Wainwright said.
Partner news
Soghomon Tehlirian assassinated Talaat Pasha on March 15, 1921

Operation Nemesis was a covert operation by the Armenian Revolutionary Federation carried out from 1920 to 1922, during which a number of former Ottoman political and military figures were assassinated for their role in the Armenian Genocide.