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Traders are just like programmers, in that they often wish there was a 'Do What I Mean' instruction. If you look for duplicated orders and request confirmation
by mos1 17y ago
Traders are just like programmers, in that they often wish there was a 'Do What I Mean' instruction.
If you look for duplicated orders and request confirmation, the traders get mad that there are extra clicks keeping them from doing what they asked.
If you don't do it, the traders get mad when they make a mistake and it is dutifully executed.
If you do it only over a certain threshold, the traders get mad when they make a mistake that is large, but not over the threshold.
That said, I'm sure this sort of error has cost banks far more than a single $150k fine. The losses on a bad trade can easily outstrip that wrist-slap.
- patio11 17y agoThe losses on a bad trade can easily outstrip that wrist-slap $340 million (eventually reduced to a bit north of $200 million) in one incident at Mizuho Securities in Japan back in 2006. Word to the wise: There is a big difference between selling one share at 610,000 yen ($6000) and selling 610,000 shares at one yen. Word to the wise, part #2: Nobody at the Tokyo Stock Exchange feels that they have the authority to cancel an order from Mizuho, even if Mizuho tries to sell a multiple of the market cap of a company in a single transaction. (This got regulators mighty pissed off, incidentally.)