Nikkei 225 Slump Caused by Deutsche Bank System Fault

A

ASusilovic

June 1 (Bloomberg) -- Deutsche Bank AG sent a spate of erroneous sell orders for Japan’s Nikkei 225 Stock Average futures contracts because of a system malfunction, said Aston Bridgman, deputy head of communications in Japan.

The erroneous orders sent stocks on the Nikkei 225 into a brief plunge seconds after the market opened at 9 a.m. The average sank as much as 1.1 percent to 9,658.44 before rebounding to about 9,743. The gauge was at 9,691.08 as of 1:54 p.m. in Tokyo.

There were about 980,000 sell orders “at one point,” according to Tatsuya Kamiki, executive officer of the Osaka Securities Exchange. Orders for the contracts were placed at 9,690 yen and 9,700 yen, according to exchange data.

At the lower price, that values the orders at about 9.5 trillion yen ($104 billion), or about 3 percent of the total market value of the first section of the Tokyo Stock Exchange, according to Bloomberg data.

“There was quite a lot of disturbance in the futures market this morning,” said Masanori Ikunaga, head of domestic stocks at Sumitomo Mitsui Asset Management Co. “As the speed of orders and trades increases at the stock exchange, there will also be potential for these types of risks.”

http://www.bloomberg.com/apps/news?pid=20601087&sid=asnsRhWIMhaU&pos=7

So far as to the myth of Deutsche Bank as a "prudent" risk taker...:cool:
 
Quote from nazzdack:

Were they all 1-lots? :confused: :D
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guillotine.gif
 
Quote from ASusilovic:

The erroneous orders sent stocks on the Nikkei 225 into a brief plunge seconds after the market opened at 9 a.m. The average sank as much as 1.1 percent to 9,658.44 before rebounding to about 9,743. The gauge was at 9,691.08 as of 1:54 p.m. in Tokyo.
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Is this a "Systems Probing" for weaknesses??
 
I think you over emphasis this "incident" if it even was one. N225 had many 100 point short term blips here or there, I am not at all surprised. I would claim you can observe such moves about 8-10 times in 250 trading days.

Quote from ASusilovic:

June 1 (Bloomberg) -- Deutsche Bank AG sent a spate of erroneous sell orders for Japan’s Nikkei 225 Stock Average futures contracts because of a system malfunction, said Aston Bridgman, deputy head of communications in Japan.

The erroneous orders sent stocks on the Nikkei 225 into a brief plunge seconds after the market opened at 9 a.m. The average sank as much as 1.1 percent to 9,658.44 before rebounding to about 9,743. The gauge was at 9,691.08 as of 1:54 p.m. in Tokyo.

There were about 980,000 sell orders “at one point,” according to Tatsuya Kamiki, executive officer of the Osaka Securities Exchange. Orders for the contracts were placed at 9,690 yen and 9,700 yen, according to exchange data.

At the lower price, that values the orders at about 9.5 trillion yen ($104 billion), or about 3 percent of the total market value of the first section of the Tokyo Stock Exchange, according to Bloomberg data.

“There was quite a lot of disturbance in the futures market this morning,” said Masanori Ikunaga, head of domestic stocks at Sumitomo Mitsui Asset Management Co. “As the speed of orders and trades increases at the stock exchange, there will also be potential for these types of risks.”

http://www.bloomberg.com/apps/news?pid=20601087&sid=asnsRhWIMhaU&pos=7

So far as to the myth of Deutsche Bank as a "prudent" risk taker...:cool:
More...
 
I don't think it is so much "probing for weakness" as I do that a bunch of the big boys are making sure that their "sell every f'ing position & get out of the market" programs are working :D Observers of this should pay REALLY CLOSE ATTENTION!!!

-gastropod
 
let me actually adjust this downwars to 5-6 times. I became curious and double checked.

Quote from asiaprop:

I think you over emphasis this "incident" if it even was one. N225 had many 100 point short term blips here or there, I am not at all surprised. I would claim you can observe such moves about 8-10 times in 250 trading days.
More...
 
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