CORRECTED-UPDATE 1-Erratic U.S. share moves being reviewed-FINRA

(Corrects to clarify the reporting firm is reviewing thetrades, not FINRA)

By Rodrigo Campos

NEW YORK, Oct 9 (Reuters) - A firm that reported trades tothe FINRA/NASDAQ Trade Reporting Facility is reviewingtransactions in at least 10 U.S.-traded securities that sawsudden, big moves on Tuesday before resuming normal trading inthe latest case of odd gyrations by stocks.

The unidentified firm reported trades to the FINRA/NASDAQTRF "at prices away from the current market," Nancy Condon, aspokeswoman for the Financial Industry Regulatory Authority,said in an email.

She said the trades are being reviewed by that firm todetermine if cancellations are necessary.

Trades cleared through the Nasdaq-operated trading facilitysparked sharp moves in either direction in a handful ofseemingly unrelated stocks, including Pandora Media , Nokia

and the Select Sector Financial SPDR exchange-tradedfund .

Shares dropped or rose rapidly anywhere from 1 percent tomore than 20 percent between 10:30 a.m. and 11 a.m., withouttriggering any trading halts. Most of the trades were on NewYork Stock Exchange-listed securities.

The NYSE was looking into the matter, a spokesman said. ANasdaq spokesman declined to comment.

The unusual trades are reminiscent of a technology glitch atKnight Capital Group in early August that generatedrapid price changes and volume spikes, as well as the infamous"flash crash" on May 6, 2010. These and other technologyproblems have heightened concerns that stock markets need moretransparency.

A source familiar with the matter said Tuesday's odd tradescould have been generated in so-called dark pools, tradingmarkets that do not show their order feed publicly.

While no trade halts were triggered, one stock, MEMCElectronic Materials , had a down-and-up move of about 20percent in less than a second. Two trades in MEMC took place atless than $2 a share when the stock had just been trading at$2.41, according to Thomson Reuters data.

The unusual behavior of the stocks "definitely is raising anissue. There is chatter along the Street that the exchanges havelost control," said Sal Arnuk, co-manager of trading at ThemisTrading in Chatham, New Jersey.

Other securities with unusual moves included Las Vegas Sands, Two Harbors Investment and Hatteras Financial.

(Reporting by Rodrigo Campos and Chuck Mikolajczak; editing byDavid Gaffen, Clive McKeef, Kenneth Barry and M.D. Golan)


Messaging: rodrigo.campos.thomsonreuters.com@reuters.net))