lederhosen (![[personal profile]](https://www.dreamwidth.org/img/silk/identity/user.png)
lederhosen) wrote2005-12-13 01:27 pm
lederhosen) wrote2005-12-13 01:27 pm
At least I'm not this guy.
Times article, via RISKS:
The trader at Mizuho Securities, who has not been named, fell foul of what is known in financial circles as “fat finger syndrome” where a dealer types incorrect details into his computer. He wanted to sell one share in a new telecoms company called J Com, for 600,000 yen (about £3,000).
Unfortunately, the order went through as a sale of 600,000 shares at 1 yen each.
That error alone would have been bad enough, but the consequences were much worse because 600,000 shares represents more than 40 times the total number issued by the company, and the vast discrepancy effectively created a technical shortage of shares, worth about £1.6 billion...
The slip caused immediate shockwaves in the Tokyo market as traders tried to guess which firm had made the mistake. Fearing the impact, traders sold shares in all Japanese broking houses and the sell-off led to the value of the Nikkei 225 falling 2 per cent. It was only later that Mizuho admitted that one of its traders had made the error...
As if the hapless trader was not unpopular enough, the firm also cancelled its end-of-year party, scheduled for last night.
I think this definitely qualifies for my jagericon.
The trader at Mizuho Securities, who has not been named, fell foul of what is known in financial circles as “fat finger syndrome” where a dealer types incorrect details into his computer. He wanted to sell one share in a new telecoms company called J Com, for 600,000 yen (about £3,000).
Unfortunately, the order went through as a sale of 600,000 shares at 1 yen each.
That error alone would have been bad enough, but the consequences were much worse because 600,000 shares represents more than 40 times the total number issued by the company, and the vast discrepancy effectively created a technical shortage of shares, worth about £1.6 billion...
The slip caused immediate shockwaves in the Tokyo market as traders tried to guess which firm had made the mistake. Fearing the impact, traders sold shares in all Japanese broking houses and the sell-off led to the value of the Nikkei 225 falling 2 per cent. It was only later that Mizuho admitted that one of its traders had made the error...
As if the hapless trader was not unpopular enough, the firm also cancelled its end-of-year party, scheduled for last night.
I think this definitely qualifies for my jagericon.
no subject
if (stock.num_shares_to_trade > stock.num_shares_outstanding) exit(0);
But, sucks to be him nonetheless.
no subject
Indeed. In fact, RISKS notes that UBS Warburg had an almost identical snafu four years earlier (coincidentally enough, also involving 610k yen turning into 610k shares).
He may well have ignored a warning message, but that sort of discrepancy ought to request more than just a warning message - if nothing else, the next guy might be doing it deliberately in exchange for a cut (or just out of malice).