10 yr Notes error ?

Discussion in 'Financial Futures' started by JayS, Nov 15, 2007.

  1. JayS


    Heard the below....

    Seems the clerk placed the order to do 35,000 dec/march option spreads, price being 'no option'.

    Seems that when the confirmation came back the client pointed out that his order had been march/dec.....

    Clerk's error and now they had 70,000 march/dec to get done!

    I heard talk of an 8.5 million loss but no idea if that was the case.
  2. it was jp morgan selling the dec 110 -112 call spread vs. buying the march 110- 112.50 call spread at 27..... the error cost 2.1 mil..they paid up to 32 to cover ----- The buy vs sell error came from upstairs but the clerk on the floor fucked up covering it by trying to use opposite brokers to get out instead of going to the orig broker who could have gotten all 28s against the delta hedges

    no doubt a major fuck up...i hope it gets stuck to a fat cat and not a clerk who would lose his job