138:
in
Germany applies the following rules: in case of transactions in securities traded in Continuous Auction, the Mistrade application shall be submitted within two trading hours upon receipt of the execution confirmation pursuant to § 2 Paragraph 1 Clause 2. As far as transactions of securities other
77:
Fat-finger errors are a product of the electronic processing of orders which requires details to be input using keyboards. Before trading was computerised, erroneous orders were known as "out-trades" which could be cancelled before proceeding. Erroneous orders placed using computers may be harder or
73:
Automated systems within trading houses may catch fat-finger errors before they reach the market or such orders may be cancelled before they can be fulfilled. The larger the order, the more likely it is to be cancelled, as it may be an order larger than the amount of stock available in the market.
139:
than structured products, which are traded in
Continuous Auction, are concerned, the application term ends according to Clause 1 upon closing of trading hours for that day, so the mistrade application has to be submitted "within half an hour after the closing of trading hours" at the latest.
219:
whose superior was on vacation confused gross and net amounts while processing a trade, causing a payment to a US hedge fund of US$ 6bn, orders of magnitude higher than the correct amount. The bank reported the error to the
British
117:(Paris, Brussels, Amsterdam), "Where a member has executed an Erroneous trade, he will have a maximum of 30 minutes from the time of execution within which he may contact Market Services to request an invalidation".
70:, a fat-finger error is an instance where an order to buy or sell is placed of far greater size than intended, for the wrong stock or contract, at the wrong price, or with any number of other input errors.
572:
Claims by civil law of the business parties according to § 2 Paragraph 1 and 2 to cancellation and adjustment of transactions as well as the right to appeal against transactions are excluded
124:"any requests from member firms to cancel trades should be made to the Market Supervision department as soon as possible and in any event within 30 minutes of the trade time".
490:
516:"SGX Reveals Information Concerning Revised Error Trade Policy - Global Custodian – The Leading quarterly magazine covering the international securities services industry"
416:
458:
250:
In 2016, it was believed a fat-finger error caused the
British pound to drop 6% in just a few minutes to US$ 1.1841, its lowest value for 31 years. A report by the
729:
39:
or physical keyboard that occurs when the wrong selection is made, or multiple selections are made due to options or keyboard keys being too close together.
823:
704:
86:
In order to have legal certainty at the stock exchange, all exchanges have tight deadlines to request a review and cancellation, if possible. At the
909:
564:
540:
665:
437:
162:
This explains why banks usually have to carry huge losses when clearly erroneous trades occurred that have not been detected within 30 minutes.
376:
200:
In 2014, a
Japanese broker erroneously placed orders for more than US$ 600bn (£370bn) of stock in leading Japanese companies, including
31:
misclick that occurs from a simple input mistake, causing unwanted secondary behavior. In common parlance, it simply refers to a common
251:
494:
644:
515:
347:
261:
the company erroneously issued new shares to employees in a stock ownership plan. The error disrupted the Korean finance market.
604:
585:
258:
465:
392:
690:
221:
939:
186:
did not cancel the trades and UBS had to buy back the shares at market-value which caused them a loss of US$ 100m.
156:
135:
131:, "the matter must be referred to SGX-ST within sixty (60) minutes from the time the error trade occurred".
107:
87:
67:
182:-shares at ¥6, instead of 6 Dentsu-shares at ¥610,000. Even though the error was spotted immediately, the
95:
225:
121:
944:
229:
183:
291:
114:
91:
32:
757:
155:
if a trade should be binding or not, erroneous trade rules of exchanges usually exclude civil-law
885:
128:
247:. The error was not detected because BNP failed to book more than 8000 trades for a whole week.
831:
372:
366:
190:
24:
59:
47:
43:
310:
269:
201:
148:
327:
28:
933:
265:
216:
205:
194:
110:
requests for review must be received "within thirty (30) minutes of execution time".
781:
46:, a fat finger error is specifically an instance where the details of a buy or sell
314:
273:
63:
881:"(2nd LD) Regulator inspects Samsung Securities over 'fat-finger' dividend chaos"
880:
286:
244:
240:
175:
36:
855:
627:
417:"SEC Approves Consistent Exchange Rules on Breaking "Clearly Erroneous" Trades"
801:
835:
243:
at a price of €108 instead of €54,400 each. This caused a loss of €160m for
734:
631:
236:
786:
152:
331:
179:
170:
Fat-finger errors are a regular occurrence in the financial markets:
99:
565:"Conditions for Transactions on the Frankfurter Wertpapierbörse §32"
666:"Deutsche Bank Error Sent $ 6 Billion to Fund in June, FT Reports"
209:
368:
Electronic
Exchanges: The Global Transformation from Pits to Bits
824:"Bank of England investigating dramatic overnight fall in pound"
730:"Daytrader verlangt von BNP Paribas wegen Preisirrtum 152 Mio €"
541:"Conditions for Transactions on the Frankfurter Wertpapierbörse"
254:
later concluded that the drop was not caused by a single factor.
151:
and in order to avoid the situation that courts have to decide
103:
197:
a stock in an error that cost the firm ¥40 billion to unwind.
910:"Deutsche Bank's Bad News Gets Worse With $ 35 Billion Flub"
628:
Japan stocks rattled by $ 617bn 'fat finger' trading error.
802:"ArminS vs BNP Paribas - 152m EUR risk management affair"
758:"BNP Paribas failed to book trades in Germany for a week"
645:$ 617 Billion in Japan Stock Orders Scrapped After Error.
856:"No single factor behind sterling flash crash, BIS says"
822:
Treanor, Jill; Davies, Justin McCurry Rob (2016-10-07).
705:"Un trader réclame 161 millions d'euros à BNP Paribas"
272:
to one of its outside accounts, more than the bank's
232:, and retrieved the money on the following day.
605:"Trader's slip leaves UBS Warburg £71m poorer"
586:"Trader's slip leaves UBS Warburg £71m poorer"
8:
343:
341:
651:, 1 October 2014. Retrieved 7 October 2014.
635:, 2 October 2014. Retrieved 3 October 2014.
189:In 2006, a fat-finger error by a trader at
691:"Do banks' internal control systems work?"
393:"Rule 7.10. Clearly Erroneous Executions"
360:
358:
303:
546:. Frankfurt Stock Exchange. 2015-11-30
491:"Singapore Exchange Rulebook - Errors"
365:Gorham, Michael; Nidhi Singh. (2009).
659:
657:
371:. Burlington: Elsevier. p. 299.
82:Deadlines for review and cancellation
7:
647:Anna Kitanaka and Toshiro Hasegawa,
459:"Rules of the London Stock Exchange"
212:, which were subsequently cancelled.
50:are mistakenly inputted by a user.
438:"BULLETIN DE PARIS No. 2007 – 030"
268:mistakenly transferred 28 billion
252:Bank for International Settlements
14:
782:"152m EUR risk management affair"
756:Binham, Caroline (2018-03-09).
215:In 2015, a junior employee at
143:Exclusion of rescission rights
1:
908:Canny, William (2018-04-19).
259:2018 Samsung fat-finger error
811:– via www.youtube.com.
689:Lusk, Michael (2017-07-31).
493:. 2014-02-24. Archived from
464:. 2017-03-13. Archived from
440:. Euronext Liffe. 2007-09-25
193:in Japan caused the firm to
584:Dunne, Helen (2001-12-01).
351:. Retrieved 7 October 2014.
335:. Retrieved 7 October 2014.
318:. Retrieved 7 October 2014.
222:Financial Conduct Authority
961:
664:Faux, Zeke (2015-10-19).
239:bought certificates from
257:On 8 April 2018, in the
136:Frankfurt Stock Exchange
520:www.globalcustodian.com
108:American Stock Exchange
68:foreign exchange market
235:In 2015, the Investor
78:impossible to cancel.
226:European Central Bank
122:London Stock Exchange
230:Federal Reserve Bank
184:Tokyo Stock Exchange
54:In financial markets
16:Keyboard input error
590:www.telegraph.co.uk
292:Typographical error
115:NYSE-Euronext Liffe
33:typographical error
886:Yonhap News Agency
129:Singapore Exchange
58:In the context of
42:In the context of
940:Financial markets
378:978-0-08-092140-2
311:Fat Finger Error.
191:Mizuho Securities
157:rescission rights
147:In order to have
60:financial markets
44:financial markets
952:
924:
923:
921:
920:
905:
899:
898:
896:
894:
877:
871:
870:
868:
867:
852:
846:
845:
843:
842:
819:
813:
812:
810:
808:
798:
792:
791:
778:
772:
771:
769:
768:
753:
747:
746:
744:
743:
726:
720:
719:
717:
716:
701:
695:
694:
686:
680:
679:
677:
676:
661:
652:
642:
636:
625:
619:
618:
616:
615:
600:
594:
593:
581:
575:
574:
569:
561:
555:
554:
552:
551:
545:
537:
531:
530:
528:
526:
512:
506:
505:
503:
502:
487:
481:
480:
478:
476:
470:
463:
455:
449:
448:
446:
445:
434:
428:
427:
425:
424:
413:
407:
406:
404:
403:
397:
389:
383:
382:
362:
353:
345:
336:
325:
319:
308:
21:fat-finger error
960:
959:
955:
954:
953:
951:
950:
949:
930:
929:
928:
927:
918:
916:
907:
906:
902:
892:
890:
879:
878:
874:
865:
863:
854:
853:
849:
840:
838:
821:
820:
816:
806:
804:
800:
799:
795:
780:
779:
775:
766:
764:
762:Financial Times
755:
754:
750:
741:
739:
728:
727:
723:
714:
712:
703:
702:
698:
688:
687:
683:
674:
672:
663:
662:
655:
643:
639:
626:
622:
613:
611:
609:Telegraph.co.uk
602:
601:
597:
583:
582:
578:
567:
563:
562:
558:
549:
547:
543:
539:
538:
534:
524:
522:
514:
513:
509:
500:
498:
489:
488:
484:
474:
472:
468:
461:
457:
456:
452:
443:
441:
436:
435:
431:
422:
420:
415:
414:
410:
401:
399:
395:
391:
390:
386:
379:
364:
363:
356:
346:
339:
326:
322:
309:
305:
300:
283:
168:
149:legal certainty
145:
84:
56:
27:input error or
17:
12:
11:
5:
958:
956:
948:
947:
942:
932:
931:
926:
925:
900:
889:. 9 April 2018
872:
847:
814:
793:
773:
748:
721:
696:
681:
653:
637:
620:
603:Dunne, Helen.
595:
576:
570:. 2017-06-26.
556:
532:
507:
482:
450:
429:
408:
384:
377:
354:
337:
320:
302:
301:
299:
296:
295:
294:
289:
282:
279:
278:
277:
262:
255:
248:
233:
213:
198:
187:
167:
164:
144:
141:
83:
80:
55:
52:
15:
13:
10:
9:
6:
4:
3:
2:
957:
946:
943:
941:
938:
937:
935:
915:
914:Bloomberg.com
911:
904:
901:
888:
887:
882:
876:
873:
861:
857:
851:
848:
837:
833:
829:
825:
818:
815:
803:
797:
794:
790:. 2018-09-26.
789:
788:
783:
777:
774:
763:
759:
752:
749:
737:
736:
731:
725:
722:
710:
706:
700:
697:
692:
685:
682:
671:
670:Bloomberg.com
667:
660:
658:
654:
650:
646:
641:
638:
634:
633:
629:
624:
621:
610:
606:
599:
596:
591:
587:
580:
577:
573:
566:
560:
557:
542:
536:
533:
521:
517:
511:
508:
497:on 2017-11-07
496:
492:
486:
483:
471:on 2012-04-17
467:
460:
454:
451:
439:
433:
430:
418:
412:
409:
394:
388:
385:
380:
374:
370:
369:
361:
359:
355:
352:
350:
344:
342:
338:
334:
333:
329:
324:
321:
317:
316:
312:
307:
304:
297:
293:
290:
288:
285:
284:
280:
275:
271:
267:
266:Deutsche Bank
263:
260:
256:
253:
249:
246:
242:
238:
234:
231:
227:
223:
218:
217:Deutsche Bank
214:
211:
207:
206:Toyota Motors
203:
199:
196:
192:
188:
185:
181:
178:sold 610,000
177:
173:
172:
171:
165:
163:
160:
158:
154:
150:
142:
140:
137:
132:
130:
125:
123:
118:
116:
111:
109:
105:
101:
97:
93:
89:
81:
79:
75:
71:
69:
65:
61:
53:
51:
49:
45:
40:
38:
34:
30:
26:
22:
917:. Retrieved
913:
903:
891:. Retrieved
884:
875:
864:. Retrieved
862:. 2017-01-13
859:
850:
839:. Retrieved
828:The Guardian
827:
817:
805:. Retrieved
796:
785:
776:
765:. Retrieved
761:
751:
740:. Retrieved
733:
724:
713:. Retrieved
711:. 2017-03-11
708:
699:
684:
673:. Retrieved
669:
648:
640:
630:
623:
612:. Retrieved
608:
598:
589:
579:
571:
559:
548:. Retrieved
535:
523:. Retrieved
519:
510:
499:. Retrieved
495:the original
485:
473:. Retrieved
466:the original
453:
442:. Retrieved
432:
421:. Retrieved
419:. 2009-10-05
411:
400:. Retrieved
398:. 2014-06-19
387:
367:
348:
330:
328:Fat fingers.
323:
315:Investopedia
313:
306:
274:market value
169:
161:
146:
133:
126:
119:
112:
85:
76:
72:
64:stock market
62:such as the
57:
41:
20:
18:
945:User errors
738:(in German)
709:lesechos.fr
349:Japan Times
287:Flash crash
241:BNP Paribas
228:and the US
37:touchscreen
934:Categories
919:2021-05-12
866:2017-01-14
841:2016-10-07
767:2018-04-01
742:2017-06-24
715:2017-06-24
675:2015-10-20
614:2017-06-24
550:2016-11-20
501:2017-11-05
444:2016-11-28
423:2017-11-02
402:2016-11-20
298:References
195:short sell
35:made on a
836:0261-3077
649:Bloomberg
264:In 2018,
174:In 2001,
893:4 August
860:BBC News
735:Die Welt
632:BBC News
281:See also
237:Armin S.
166:Examples
25:keyboard
787:YouTube
153:ex-post
127:At the
120:At the
113:At the
834:
807:May 3,
525:May 3,
375:
332:Nasdaq
224:, the
208:, and
202:Nomura
180:Dentsu
100:NASDAQ
568:(PDF)
544:(PDF)
475:9 May
469:(PDF)
462:(PDF)
396:(PDF)
270:euros
210:Honda
48:order
29:mouse
23:is a
895:2024
832:ISSN
809:2022
527:2022
477:2017
373:ISBN
134:The
106:and
96:CBOT
92:BATS
88:NYSE
245:BNP
176:UBS
104:OMX
66:or
936::
912:.
883:.
858:.
830:.
826:.
784:.
760:.
732:.
707:.
668:.
656:^
607:.
588:.
518:.
357:^
340:^
204:,
159:.
102:,
98:,
94:,
90:,
19:A
922:.
897:.
869:.
844:.
770:.
745:.
718:.
693:.
678:.
617:.
592:.
553:.
529:.
504:.
479:.
447:.
426:.
405:.
381:.
276:.
Text is available under the Creative Commons Attribution-ShareAlike License. Additional terms may apply.