Mizuho Securities and Other Trading Errors

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Abstract

Electronic trading systems allow trades to be executed rapidly and efficiently, but also make it easy for traders to make errors by punching in the wrong numbers particularly while trading in a hurry. This case describes a large trading error at Mizuho Securities that cost the firm $335 million as well as two other similar incidents in India and in the United States. The case describes the deficiencies at the trading firm and at the exchange that lead to such mishaps and also discusses how traders and exchanges could respond to these errors.

Additional Information

Product Type Case
Reference No. F&A0483
Title Mizuho Securities and Other Trading Errors
Pages 7
Published on Mar 26, 2010
Year of Event 2005
Authors Varma, Jayanth R;
Area Finance and Accounting (F&A)
Discipline Finance
Sector Public Sector, Trade
Country Japan

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