Citi confirms: One of their traders was behind the mistake that lowered the stock markets on Monday
May started abruptly for many traders in Europe, then also in Oslo. After a normal opening, the main index fell some instantaneous progress than usual at ten o’clock, and was at most down 4.8 percent with no visible explanation.
The price collapse was much greater in Stockholm, and it was quickly referred to as a “flash crash” – an immediate sharp fall on the stock markets, with immediate recovery. The most famous happened in 2010 on Wall Street.
Nasdaq in Stockholm states that the price fall was due to a major order from a market player, and it is speculated that it may be a sausage finger mistake that is behind the fall.
A major bug order placed by Citigroup’s trading desk in London was the cause of the price collapse, according to Bloomberg’s sources.
And on Tuesday night, Citi confirmed the information:
– One of our traders made a mistake entering a transaction. Within minutes, we identify the error and correct it.
The price collapse was noticeable over large parts of Europe, but greatest on the Nordic stock exchanges.
300 billion euro blown
According to Bloomberg, the price collapse knocked out 300 billion euros at most, before prices began to rise.
Finance on the Nordic stock exchange platform Nasdaq, which includes the stock exchanges in Helsinki, Copenhagen and Stockholm and finance companies such as Ratos, Investor and Kinnevik, fell by a maximum of 11.6 per cent. The banking index, which includes shares such as Danske Bank, Handelsbanken, SEB and Nordea, fell by a maximum of 8 per cent.
The Stockholm Stock Exchange’s benchmark index had at most a crash of 7.9 percent, marginally better than the Helsinki Stock Exchange. The Copenhagen index was at most down 8.3 percent.
The fact that the British stock markets were closed on Monday, and that the US stock exchanges had a panicked experience on Friday, did not help the mood of the Nordic stockbrokers on Monday morning:
– The rumor has it that a single player has placed an order of 1.6 billion Swedish kroner broadly in the Swedish market. This may have been several times larger than it really should be, said investment director Robert Næss in Nordea to DN on Monday morning.
In addition to the day, the arrows turned, and the main index in Oslo ended the first trading day in May with a decline of 1.73 percent. The Stockholm Stock Exchange closed down 1.9 percent.
The Stockholm Stock Exchange’s owner Nasdaq has decided that no order placed on Monday will be canceled.
This may mean that Citigroup will have to tap from any sausage fingers on its cape.
(Terms)Copyright Dagens Næringsliv AS and / or our suppliers. We want you to share our stuff using a link that leads directly to our pages. Copying or other use of all or part of the content may only be done with written permission or as permitted by law. For further terms see here.