--Shares of Rowan Cos. and other oil- and gas-related stocks see
brief price spikes in late-afternoon trading
--Exchanges let trades stand after investigating them
--Activity follows high-profile glitches in trading this
year
By Matt Jarzemsky
Seven oil- and gas-related stocks saw brief price spikes in the
closing minutes of U.S. trading Tuesday, the latest sign of unusual
activity that has unnerved some market participants.
Around 3:47 p.m. EDT, shares jumped between 3% and 9% in oil-
and gas-equipment makers National Oilwell Varco Inc. (NOV), Cameron
International Corp. (CAM), Exterran Holdings Inc. (EXH); offshore
drillers Rowan Cos. (RDC), Ensco PLC (ESV) and Diamond Offshore
Drilling Inc. (DO); and Tidewater Inc. (TDW), a provider of marine
services to the oil and gas industry.
All of the affected stocks quickly reversed those gains, and
each closed within 2% of the prices at which they began the
day.
The activity led to an investigation by exchange operators such
as Nasdaq OMX Group (NDAQ), NYSE Euronext (NYSE) and Direct Edge
Holdings LLC, which sent advisories to traders noting the unusual
activity was "potentially erroneous." The exchanges later said
trades in the affected stocks would stand.
Spokesmen for NYSE and Nasdaq declined to comment. A Direct Edge
spokesman couldn't immediately be reached.
The unusual price action comes as exchanges brace for greater
scrutiny from the Securities and Exchange Commission, which
announced Friday it had fined NYSE Euronext as part of a settlement
involving allegations of improper delivery of market data. NYSE
Euronext didn't admit or deny the allegations.
Earlier this year, trades caused by faulty software at Knight
Capital Group Inc. (KCG) led to a $440 million loss for the
firm.
In the wake of that episode and other tech-related
glitches--such as the failed listing of BATS Global Markets this
spring and problems with Facebook Inc.'s (FB) initial public
offering in May--the SEC scheduled a roundtable on market
technology issues for Oct. 2.
Write to Matt Jarzemsky at matthew.jarzemsky@dowjones.com
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