OSAKA – Deutsche Securities Inc. has reported that it placed ¥16.73 trillion in erroneous sell orders Tuesday on the Osaka Securities Exchange for futures contracts on the 225-issue Nikkei stock average due to an internal trading system error.
The sum indicates one of the largest erroneous trading orders on an exchange in Japan, prompting the OSE to collect information, including reports requested from DSI.
“DSI takes this incident extremely seriously and is taking all steps to ensure it does not reoccur,” the Deutsche Bank group company said.
It canceled more than 99 percent of the erroneous orders, while allowing deals worth some ¥55 billion to be clinched.
Losses to DSI were limited as most of the sell orders were offset with buy orders, the company said.
The erroneous trades were executed by the firm’s proprietary trading unit through its trading system independent of client activity, it said. “This incident, therefore, does not affect DSI’s ability to trade for clients.”
DSI placed erroneous sell orders for some 1.24 million Nikkei 225 futures contracts and 4.82 million Nikkei 225 mini futures contracts just after Tuesday’s session started on the OSE.
Soon after the erroneous orders, the futures price dropped by some 100 points and the Nikkei average on the Tokyo Stock Exchange lost some 110 points.
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