MUMBAI: The market jocularly calls it the ‘fat finger’ trade. On Thursday, two freak trades across Tokyo and Mumbai blew a hole to the tune of about Rs 55 crore for two brokerage firms.
Tokyo’s Nikko Citigroup, a brokerage house, admitted that a mistake made by one of its dealers in executing a trade resulted in a $9 million loss.
Instead of putting a buy order for two shares, the dealer ended up buying 2,000 shares. Coincidentally, the same afternoon, in Mumbai, another unidentified brokerage house went through a similar experience.
At 2:24 p.m., while the Tulip IT Services scrip was trading at Rs 185 on the NSE, a little more than 4 lakh shares of the firm changed hands at 25 paisa a share.
Trading data showed that other than the 4.04 lakh shares sold at 25 paise each, another 6 lakh shares of the same stock were also sold at Rs 100 per share during the same time.
Since it was Tulip’s first day of trading, there were no circuit filters in place. Market players said that a dealer may have wrongly punched in trade data into his terminal and the shares were sold at a hefty discount. The result: the brokerage house lost about Rs 12.7 crore.
SOURCE:THE TIMES OF INDIA