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Fat fingers!!!

Old 05-06-2010, 01:47 PM
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Default Fat fingers!!!

there's talk that a Citi trader with fat fingers punched an electronic trade for sale of 16 BLN! shs instead of 16 mil... thus triggering todays selloff, elctronic trading of stop losses and exchnages to liquidate.

no bonus for him
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Old 05-06-2010, 01:49 PM
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Are traders insured for such errors?
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Old 05-06-2010, 01:54 PM
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a trader is not liable but his firm is.

the trader will get fired but i've never heard of insurance for a mistake. there's insurance against fraud but there's no fraud. it's just a simple human mistake. (with huge consequences..)
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Old 05-06-2010, 02:00 PM
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Originally Posted by Pole View Post
a trader is not liable but his firm is.

the trader will get fired but i've never heard of insurance for a mistake. there's insurance against fraud but there's no fraud. it's just a simple human mistake. (with huge consequences..)

why fired? fat finger sold before the market dropped! could have bought them all back at a lower price and a profit
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Old 05-06-2010, 02:19 PM
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not likely... if it was that easy we'd all be doing it

he still has to buy back the 15'984'000'000 shs that he's now short. he'd get slaughtered.
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Old 05-06-2010, 04:08 PM
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I am not sure I buy the trader excuse yet.I have never worked in the business,but I would be surprised if there weren't limits in place as to what size orders the trader could conduct.Huge difference between 16mil and 16bil.I would guess it had more to do with europe and algo/high frequency trading.Curious to see what the final outcome will be.
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Old 05-06-2010, 04:17 PM
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Dohh!!!
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Old 05-07-2010, 07:23 AM
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Originally Posted by Pole View Post
there's talk that a Citi trader with fat fingers punched an electronic trade for sale of 16 BLN! shs instead of 16 mil... thus triggering todays selloff, elctronic trading of stop losses and exchnages to liquidate.

no bonus for him

If anyone believes that I'm sure Goldman has a nice new investment product with your name on it.
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Old 05-07-2010, 07:37 AM
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Originally Posted by tka View Post
I am not sure I buy the trader excuse yet.I have never worked in the business,but I would be surprised if there weren't limits in place as to what size orders the trader could conduct.Huge difference between 16mil and 16bil.I would guess it had more to do with europe and algo/high frequency trading.Curious to see what the final outcome will be.
Probably right on all except the "limits in place" part, not really the case...
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Old 05-07-2010, 08:30 AM
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Originally Posted by Venture34 View Post
Probably right on all except the "limits in place" part, not really the case...
Interesting.I have always wondered what, if any,limits or constraints traders worked under.I would have assumed limits to prevent either an order entry mistake or to keep limits on risk individual traders pose to the firm.
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Old 05-07-2010, 11:12 AM
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Better to have Fat fingers, than to have slim Johnson...

Last edited by fidhhook54; 05-07-2010 at 11:41 AM.
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Old 05-07-2010, 11:31 AM
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For a few seconds yesterday I was a millionaire
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