Barclays ‘fat-finger' trading mistake could cost £3 billion to a bank
A strike Around 11 years ago, Steve Perkins bet a $520 million wager on the price of oil after getting thoroughly blitzed over the course of a four-day drinking bender that started on Saturday with a round of golf.
Author:James PierceReviewer:Camilo WoodApr 20, 20212.5K Shares422.8K Views
A strike Around 11 years ago, Steve Perkins bet a $520 million wager on the price of oil after getting thoroughly blitzed over the course of a four-day drinking bender that started on Saturday with a round of golf.
The final trade was too much for him and he blanked out, saying he had no idea what he was doing
He is also banned from the industry because he faces an extreme threat while intoxicated
When I had to swap £50 notes at Starbucks, the stockbroker was baffled: "How come if I try to get £50, the boss doesn't get that?"
When City traders put in noughts that they don't like, and get all zeroes instead, they get all zeroes instead. Suddenly, he is now offering half a million shares in Barclays, rather than five hundred thousand.
Perhaps more usefully, they just ordered the book in the wrong way (drink may not have been involved).
In the old system, this can also happen in the turmoil of a trading session: usually, people might mess up which commodity they are trading. [Perhaps] that makes sense considering how busy it is on the trading floor.
Also, with respect to the Barclays exchange, the reaction happened because there were no bids since the two blocks of 48,000 shares were not especially relevant.
If the theory holds true, the trading houses are expected to figure out what is wrong, and then investigate it.
Stocks and other than Barclays also go up as rivals see a problem After that, they will go and make the same deal, worsening the situation They quickly hop on it, instead of trying to work it out.
James Pierce
Author
Camilo Wood
Reviewer
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