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Fat Fingered Financial Failure, Forshadowing Firing.

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  • Fat Fingered Financial Failure, Forshadowing Firing.

    Got a kick out of this one...

    http://www.timesonline.co.uk/article...917093,00.html

    Lucky Shot

  • #2
    Re: Fat Fingered Financial Failure, Forshadowing Firing.

    +rep just for the title...

    ouch that sucks
    that sounds like a good idea trooper.
    -Vulcan

    Comment


    • #3
      Re: Fat Fingered Financial Failure, Forshadowing Firing.

      I hope the deal is reversed. It's obviously a mistake and shouldn't have happened. The results could have serious economic consequences. We're not talking about getting all the beanie babies at a K-Mart for $1 each here.

      Comment


      • #4
        Re: Fat Fingered Financial Failure, Forshadowing Firing.

        Originally posted by Lucky Shot
        Got a kick out of this one...

        http://www.timesonline.co.uk/article...917093,00.html

        Lucky Shot
        Great title! +rep.

        Yeah, I work in the Securities Industry. This type of crap happens all the time, but not usually at that level. That's one hell of a mistake.

        Wow. That guy is gone. Never will work again in this industry.

        Comment


        • #5
          Re: Fat Fingered Financial Failure, Forshadowing Firing.

          Originally posted by leejo
          I hope the deal is reversed. It's obviously a mistake and shouldn't have happened. The results could have serious economic consequences. We're not talking about getting all the beanie babies at a K-Mart for $1 each here.
          Can stock market trades be reversed at all, even in error? I'm not very familiar with the rules of trading.
          [squadl]
          "I am the prettiest african-american, vietnamese..cong..person." -SugarNCamo

          Comment


          • #6
            Re: Fat Fingered Financial Failure, Forshadowing Firing.

            I'm surprised they are going to make it stand. I suppose though, if you had a cock-up with a single entity(broker/dealer) it wouldn't be so big a deal to get it cancelled, but since they executed trades with lots and lots of retail clients(that's the impression I got, not just a broker), maybe that makes it harder to cancel...

            And what's with the part about them buying from themselves, couldn't they just stop selling the remainder instead of actually buying it from themselves?? "It is thought that Mizuho, once it realised its mistake, sought to buy back 550,000 shares from itself "

            Comment


            • #7
              Re: Fat Fingered Financial Failure, Forshadowing Firing.

              Originally posted by SmokingTarpan
              Can stock market trades be reversed at all, even in error? I'm not very familiar with the rules of trading.
              Not generally, no.

              Comment


              • #8
                Re: Fat Fingered Financial Failure, Forshadowing Firing.

                Not generally, but this isn't the sort of situation you use to make general rules, right?

                Comment


                • #9
                  Re: Fat Fingered Financial Failure, Forshadowing Firing.

                  Originally posted by Addict
                  I'm surprised they are going to make it stand. I suppose though, if you had a cock-up with a single entity(broker/dealer) it wouldn't be so big a deal to get it cancelled, but since they executed trades with lots and lots of retail clients(that's the impression I got, not just a broker), maybe that makes it harder to cancel...

                  And what's with the part about them buying from themselves, couldn't they just stop selling the remainder instead of actually buying it from themselves?? "It is thought that Mizuho, once it realised its mistake, sought to buy back 550,000 shares from itself "
                  It's a logistical nightmare.

                  The trader fingers the trade in, and it goes out across Reuters, Bloomberg, or whatever electronic backbone they are using into the market.

                  One investor could have bought all the mispriced shares, but not likely. So you have maybe 100s of counterparties that have taken part in the trade.

                  Within T+1 (trade day + one), the counterparties will be registered with the central depository, which records all the trades. That's the only way to find out everyone who bought the stocks for sure.

                  Even then, technical shortage of a stock is a HUGE deal. They bought nothing, as there is insufficient stock issued to cover the trade at ANY price. He sold 40x more shares than actually exist.

                  I expect that Tokyo will reverse it, an levy a hefty fine Mizuho's way.

                  It will take time to unravel, though.

                  Comment


                  • #10
                    Re: Fat Fingered Financial Failure, Forshadowing Firing.

                    In the words of Donald Trump:

                    "You're fired!"
                    |TG|Delta_Swift

                    Comment


                    • #11
                      Re: Fat Fingered Financial Failure, Forshadowing Firing.

                      heck why not TG invest in this and we could own a company.....that could be fun
                      that sounds like a good idea trooper.
                      -Vulcan

                      Comment


                      • #12
                        Re: Fat Fingered Financial Failure, Forshadowing Firing.

                        http://www.msnbc.msn.com/id/10394551/

                        I think this article supplies more context about the market, rules, etc.

                        Are the trades on teh tokyo exchange all t+1 and not t+3? Wait till it is cleared in 15 minuntes, that'll make mistakes even crazier...

                        Comment


                        • #13
                          Re: Fat Fingered Financial Failure, Forshadowing Firing.

                          Biggest ****up of the year award.

                          Comment


                          • #14
                            Re: Fat Fingered Financial Failure, Forshadowing Firing.

                            Originally posted by Addict
                            http://www.msnbc.msn.com/id/10394551/

                            I think this article supplies more context about the market, rules, etc.

                            Are the trades on teh tokyo exchange all t+1 and not t+3? Wait till it is cleared in 15 minuntes, that'll make mistakes even crazier...
                            I checked the JSCC, and they are still T+3. I thought Tokyo was all T+1 now.

                            Comment

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