Yesterday the computer at Goldman Sachs responsible for trading options whose symbols start with the letters H through L traded a bunch of options at the wrong prices and put Goldman out by a hundred million dollars or so. Today various exchanges are sitting down and pondering whether to give Goldman that money back. This strikes some people as unfair because, y’know, hahaha Goldman you screwed up, but also because someone was on the other side of those trades, made a profit, hedged it out, and will now be sad and possibly screwed when it is unwound.1
Which all seems pretty justified, and the image of a bunch of exchange operators getting together and being all “better cancel these trades, it’s Goldman, don’t want to make them mad” is in fact disturbing. However! That is not apparently what is happening. From Bloomberg:
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