Tokyo Stock Exchange Group Inc. said Monday it will not appeal a lower court ruling ordering it to pay damages of around ¥10.7 billion to Mizuho Securities Co., saying an appeal would be time-consuming and counterproductive to its ongoing efforts to improve its trading system.
The operator of the Tokyo Stock Exchange was ordered by the Tokyo District Court on Dec. 4 to pay damages to Mizuho Securities because it bore responsibility in a botched trade in 2005 that cost the brokerage a huge amount of money.
The incident occurred Dec. 8, 2005, when Mizuho Securities placed a sell order for 610,000 shares in staffing company J-Com Co. at ¥1 on the exchange's Mothers market, although it had intended to sell one share for ¥610,000.
Mizuho Securities tried to withdraw the sell order immediately after noticing the mistake, but the stock exchange's computer system failed to process the cancellation order, leading the brokerage to take steps such as buying back shares. In about 10 minutes, the brokerage lost about ¥40.7 billion.