17 April 2014
Your browser is unable to support Flash files.

Human error blamed for Indian 'flash crash'

05 October 2012  |  5402 views  |  0 graph 2

India's National Stock Exchange (NSE) was forced to briefly halt trading this morning after 59 erroneous orders sent the Nifty index tumbling nearly 16% in a matter of minutes.

According to Bloomberg, trading in the Nifty and some individual companies was stopped for 15 minutes at 9:49am Mumbai time after the erroneous orders wiped out $58 billion from the market.

Human error was to blame, not a faulty algorithm, for the guilty orders, which were entered by brokerage Emkay Global Financial Services for a client and caused the Nifty to fall nearly 900 points.

However, the Securities and Exchange Board of India has still begun a probe into whether adequate safeguard mechanisms were in place to avoid a 'flash crash' like situation, says the Economic Times.

The Indian episode follows a 28% hike in Kraft shares on US exchanges at the opening bell Thursday. The sharp hike in the share price has been attributed to a fat-finger error at an unidentified brokerage. Nasdaq, Nyse Arca Management, Bats and Direct Edge and other exchanges all cancelled trades in Kraft Foods Group executed between 9:30 a.m. and 9:31 a.m.

Comments: (0)

Comment on this story (membership required)
Log in to receive notifications when someone posts a comment

Related blogs

Create a blog about this story (membership required)

Related stories

28 August, 2012
12 August, 2010
30 June, 2010
12 May, 2010

Related company news

 
Your browser is unable to support Flash files.

Featured job

£60k+ in addition to a bonus based on personal and...
Twickenham, London

Find your next job