Interesting article in the AFR (p55) this morning. Merrill Lynch equities was fined by the ASX after incorrect trades inadvertently wiped out more than a quarter of the share prices of Newcrest & Tabcorp and more than half the value of Orica. The fines were related to processing errors.
get this, summary of trades:
1) 107 trades for tabcorp at $0.001 pushed price down from $8.01 to $5.90 on 24/9/08 on 107 trades
2) good news for longs of telstra as algorithmic trading engine was outdated and forced telstra price from $4.32 to $5.40 on an 9.7M share order from an offshore client
3) order for 100K orica shares was incorrectly enterd into the bot at $5.60 - 107 trades forced the orica price from $15.59 to $5.60 - 3/12/08
4) 100,000 newcrest shares entered at $0.26 caused 119 trades to push price down from $22.49 to $18.55 on 20/10/08
how much money did you lose on these "transactions" - you will be relieved to know that the asx stung merrill for a whopping $170,000 fine for these "inadvertent" trades - and it took more than 12 months to reach this point!!!!
I suppose we should rest easy as they have probably upgraded their outdated algorithmic trading engine!!!!
- Forums
- ASX - General
- bot trading fines
Interesting article in the AFR (p55) this morning. Merrill Lynch...
Featured News
Featured News
The Watchlist
FHE
FRONTIER ENERGY LIMITED
Adam Kiley, CEO
Adam Kiley
CEO
SPONSORED BY The Market Online