Computer glitch causes Shanghai trading chaos

Computer glitch causes Shanghai trading chaos

A computer error at China Everbright Securities has been blamed for a flash rally in China's equity market on Friday.

On Friday morning the Shanghai Composite index surged nearly six per cent in seconds for no apparent reason. The index closed down 0.6%.

It soon emerged that the rise was caused by State-controlled Everbright, which placed 23.4 billion yuan of erroneous buy orders.

Although speculation initially focussed on a possible 'fat finger' trade, regulators have now blamed a glitch with the brokerage's automated trading system.

The China Securities Regulatory Commission has launched an investigation and hit Everbright with a three month proprietary trading ban.

Comments: (1)

Neil Crammond
Neil Crammond - DIVENTO FINANCIALS - London 19 August, 2013, 10:322 likes 2 likes

 the regulators are correct in suspending the company from trading .... Perhaps if other regulators took this approach    folks like JPM GSF BZW RBS  would not keep offending  and "fair and orderly markets" would return !

Visit collinsongroup.com

Trending Stories

Featured Job
All Jobs »
London, UK

Senior Sales, Collateral Management Solutions (London, covering EMEA)

Competitive base + bonus + benefit package

22 Jul