Typing Error Causes $3.5 Billion Trade for Company valued at $93 Million

Discussion in 'Wall St. News' started by fxpeculator, Dec 8, 2005.

  1. nkhoi

    nkhoi

    ipo at $5k per share, expensive!
     
    #31     Dec 11, 2005
  2. catima

    catima

    The worst I've done is put an offer for 24,000 shares of juniper 10c below the bid instead of above the offer, on what was INCA back then. It wasn't pretty, it was fairly thin back then, so I sent it down about 6 cents when i realized what I had done, i was within 3 cents or so of breaking even, but then, quite obviously it dashed all the way back up to the original price. End result: about 1400$ loss, but eh, it was my fault, crud happens.
     
    #32     Dec 11, 2005
  3. Due to the wrong sell order executed last Thursday, Mizuho Securities had an obligation to deliver 96,236 J-Com shares -- more than six times the firm's total outstanding shares.

    llollololololo

    Right out of the Producers

    All the old ladies coming for thier 90% of the play.
     
    #33     Dec 12, 2005
  4. http://www.bloomberg.com/apps/news?pid=10000101&sid=aUvPRGqzqUNQ&refer=japan

    Nikko Citigroup, Other Brokerages May Return J-Com Profits
    Dec. 14 (Bloomberg) -- Nikko Citigroup is considering returning money it made after Mizuho Securities Co. bungled a trade on the Tokyo Stock Exchange debut of J-Com Co., spokeswoman Naomi Watanabe said.

    UBS AG and four other brokerages that made money may also return their profits, according to reports from Japanese news agencies including Nikkei, Asahi and Kyodo.

    Mizuho Securities, which tried to sell 42 times more shares in Osaka-based J-Com than the company has outstanding, had to pay Nikko Citigroup 1 billion yen ($8.4 million) as part of a settlement to cancel the erroneous trade, regulatory filings show. Nikko Citigroup earned 119.6 million yen for arranging the initial public offering, according to data compiled by Bloomberg.

    UBS, Credit Suisse First Boston Inc. and Lehman Brothers Holdings Inc. also made windfall gains. The profits drew criticism from Japan's Minister for Financial Services Kaoru Yosano.

    ``Brokerages don't come out looking good by bidding for shares they know don't exist,'' Yosano said at a press briefing yesterday. ``Brokerages should operate in an ethical manner.''

    Kakuko Suzuki, a Tokyo-based spokeswoman for UBS, wasn't immediately available to comment. Credit Suisse spokeswoman Isamu Kajino wasn't immediately available. Morgan Stanley spokeswoman Kuniko Shibuya declined to comment. Aya Tanaka, a Nomura spokeswoman declined to comment
     
    #34     Dec 14, 2005
  5. http://mdn.mainichi-msn.co.jp/national/news/20051216p2a00m0na009000c.html

    Tokyo man rakes in 563 million yen from Mizuho stock blunder
    A 24-year-old man made a profit of 563 million yen after buying thousands of shares mistakenly offered for only 1 yen each in a massive botched stock trade on the Tokyo Stock Exchange, a report has shown.

    The man, a resident of Tokyo's Minato-ku, cashed in on the error after snapping up 3,701 J-Com shares mistakenly offered by Mizuho Securities Co. at a price of 1 yen for 610,000 shares instead of one share for 610,000 yen, a report submitted to the Kanto Local Finance Bureau showed.

    The 3,701 shares accounted for 25.52 percent of all issued shares in J-Com Co.

    The Japan Securities Dealers Association plans to ask securities firms to return profits made on the botched sale, but it has exempted individuals from the request.

    The botched order cost Mizuho Securities Co. tens of billions of yen. (Mainichi)
     
    #35     Dec 16, 2005
  6. mhashe

    mhashe


    Big question is Why?

    Why return profits made because of the mistake of some idiot somewhere? The exchange has no rules on handling orders placed way outside of the current spread and they ask traders to give profits back? Someone needs to show them the middle finger.
     
    #36     Dec 16, 2005
  7. A nice year-end bonus from Mizuho :D

    But 3701 x 610000 is 4.5x more than 563 millions yen ???
     
    #37     Dec 16, 2005
  8. catima

    catima

    Oh, he probably had to pay charts/desk fee/chair fee etc.
     
    #38     Dec 16, 2005