Deutsche Bank Said to Close Desk Responsible for Trading Error

Discussion in 'Wall St. News' started by ASusilovic, Jul 16, 2010.

  1. July 16 (Bloomberg) -- Deutsche Bank AG is closing a three- person operation in Japan after a probe of erroneous sell orders made in June that caused the Nikkei 225 Stock Average to plunge, three people with knowledge of the matter said.

    Frankfurt-based Deutsche Bank is likely to announce the results of the investigation today, one person said, declining to be identified as the matter hasn’t been made public. The bank will continue to trade in Japan through other departments and closure of the Asian Quantitative Trading department in Japan will not affect clients, two of the people said.

    Automated sell orders for Japan’s Nikkei 225 Stock Average futures contracts sent the index into a brief dive on June 1 seconds after trading opened at 9 a.m. The orders were sent after changes to an automated trading system resulted in misread market data, one of the people said.

    Deutsche Bank has stopped using the automated trading system in Japan since then and decided to close the department in Japan, the person said. Aston Bridgman, a spokesman for Deutsche Bank in Tokyo, declined to comment.

    About 180 sell orders were placed repeatedly at the start of trading and amounted to about 16 trillion yen ($183 billion), Michio Yoneda, president of Osaka Stock Exchange, said on June 22. About 50 billion yen of those orders were executed and the transactions were canceled after the bourse contacted the bank, he said.

    And one quant desk less in the marketplace. Ooppsss...
  2. AK100


    So many cowboys running these desks.
  3. Too much money in the background. They do not need to think "twice" about next month paycheck...
  4. bighog

    bighog Guest

    Sounds like idea for the next GEICO commercial.