13 December 2017
visit www.solutions.lexisnexis.com

Mizuho sues TSE over 'fat finger' trade botch-up

27 October 2006  |  9646 views  |  0 Tokyo Stock Exchange

Japan's Mizuho Securities has filed a lawsuit against the Tokyo Stock Exchange (TSE) seeking Y40.4bn ($350m) in compensation for losses it incurred following a botched trade last December.

The Japanese broker said in August that it was seeking compensation from the TSE over the "fat finger" trading error, where a dealer mistakenly offered to sell 610,000 shares for one yen each in recruiting company J-Com, instead of one share for Y610,000.

The brokerage was forced to buy back the shares from market investors at a massive loss and booked a one time charge of Y40.7bn in the third quarter of last year following the incident.

The TSE later admitted that a problem with its own dealing system prevented the trader from cancelling the erroneous share-sale order.

According to local press reports Mizuho filed the lawsuit after the exchange repeatedly turned down its requests for compensation and it became clear that a private settlement was "out of reach".

The Mizuho trade claimed the job of TSE president Takuo Tsurushima - who resigned alongside IT head Sadao Yoshino and managing director and executive officer Tomio Amano - following this incident and an earlier systems failure at the exchange.

Separately, the TSE is reportedly holding talks with the New York Stock Exchange (Nyse) concerning a capital and operational tie-up. The move comes as the US exchange focuses on increasing its presence in Asia amid intensifying competition among exchanges.

In a statement TSE says it has held discussions with the NYSE concerning on business alliance and has investigated "a variety of different possibilities".

"The TSE is currently addressing many operational challenges such as construction of the next-generation system and listing of the TSE's shares. While steadily implementing these plans, the TSE will look into such alliances with other exchanges abroad," says the statement.

Comments: (0)

Comment on this story (membership required)

Finextra news in your inbox

For Finextra's free daily newsletter, breaking news flashes and weekly jobs board: sign up now

Related stories

Tokyo Stock Exchange invites trading system tenders

Tokyo Stock Exchange invites trading system tenders

23 August 2006  |  7222 views  |  0 comments
Mizuho demands Y40.4bn from TSE for trade botch-up

Mizuho demands Y40.4bn from TSE for trade botch-up

22 August 2006  |  8798 views  |  0 comments
TSE to spend $27m on trading systems upgrade

TSE to spend $27m on trading systems upgrade

21 February 2006  |  5797 views  |  0 comments
Securities firms give up Mizuho windfalls

Securities firms give up Mizuho windfalls

17 February 2006  |  7031 views  |  0 comments
New TSE tech chief to double IT spending

New TSE tech chief to double IT spending

24 January 2006  |  7993 views  |  0 comments
TSE president Tsurushima quits over computer bungles

TSE president Tsurushima quits over computer bungles

20 December 2005  |  9572 views  |  0 comments
Tokyo Stock Exchange admits error in Mizuho trade botch-up

Tokyo Stock Exchange admits error in Mizuho trade botch-up

12 December 2005  |  18662 views  |  0 comments
Fujitsu cuts executives' pay after TSE systems failure

Fujitsu cuts executives' pay after TSE systems failure

28 November 2005  |  7414 views  |  0 comments
Tokyo Stock Exchange slashes executives' pay after systems breakdown

Tokyo Stock Exchange slashes executives' pay after systems breakdown

10 November 2005  |  31659 views  |  0 comments
Fujitsu blamed for Tokyo Stock Exchange systems failure

Fujitsu blamed for Tokyo Stock Exchange systems failure

08 November 2005  |  11158 views  |  0 comments
Tokyo Stock Exchange hit by technical failure

Tokyo Stock Exchange hit by technical failure

01 November 2005  |  7916 views  |  0 comments

Related company news

 

Related blogs

Create a blog about this story (membership required)
visit www.aciworldwide.comvisit www.solutions.lexisnexis.comvisit www.atos.net

Top topics

Most viewed Most shared
Saxo Bank's 'Outrageous Prediction': Bitcoin to peak at $60k next year before spectacular crashSaxo Bank's 'Outrageous Prediction': Bitco...
12165 views comments | 7 tweets | 7 linkedin
Deutsche Bank paper hails 'huge' blockchain potentialDeutsche Bank paper hails 'huge' blockchai...
9354 views comments | 16 tweets | 22 linkedin
PSD2: Laying the regulatory foundation for a new age in paymentsPSD2: Laying the regulatory foundation for...
7972 views comments | 17 tweets | 36 linkedin
Santander UK poaches Barclays innovation chief Michael HarteSantander UK poaches Barclays innovation c...
7351 views comments | 8 tweets | 17 linkedin
Alior Bank to use Open API platform and accelerator to create fintech marketplaceAlior Bank to use Open API platform and ac...
7204 views comments | 20 tweets | 11 linkedin

Featured job

Find your next job