More on the Software Glitches Behind Mizuho Stock Sale Fiasco

Bruce Wallace, reporting for the L.A. Times:

After initially denying any responsibility for the J-Com snafu, exchange executives acknowledged this week that flaws in their electronic trading system prevented Mizuho from correcting its order and minimizing losses. Mizuho traders realized their mistake within 85 seconds of placing the erroneous order and made four attempts to cancel it. It was rejected each time.

The exchange concedes that its software was unable to accept a cancellation order while “buy” orders were coming in. Nor was the system programmed to accept a cancellation order on a newly listed stock.

Wednesday, 14 December 2005