Posted on 05/06/2010 1:58:32 PM PDT by Newton
In one of the most dizzying half-hours in stock market history, the Dow plunged nearly 1,000 points before paring those losses in what possibly could have been a trader error.
According to multiple sources, a trader entered a "b" for billion instead of an "m" for million in a trade possibly involving Procter & Gamble [PG 60.75 -1.41 (-2.27%) ], a component in the Dow. (CNBC's Jim Cramer noted suspicious price movement in P&G stock on air during the height of the market selloff. Watch.)
Sources tell CNBC the firm in question that handled the erroneous trade is Citigroup [C 4.04 -0.14 (-3.35%) ]. The bank said it has no evidence of a bad trade but is investigating the situation.
(Excerpt) Read more at cnbc.com ...
Oh, yeah. Numeric information is routinely entered into computer forms in textual format. Makes complete sense.
Can you say LAWSUIT!!! If an error made people sell stock...well this opens a really big door
I don’t believe this explanation for one second. Those firms should all have software to check for input errors like that and stop them from being sent into the market. My trading workstation has that kind of software and it’s just a java-based workstation from a firm where anyone can set up an account. I have it set to stop any trades greater than 200 shares and ask me for confirmation on any share amounts above 200. That way I can’t accidentally type in 2000 instead of 200.
Someone is spreading BS rumors on Wall Street. This looks more like a breakdown in orderly functioning of market maker firms. I’ve seen a great deal of that behavior before in the first 15 minutes of the day, but never to this extent in the middle of the day.
In most brokerage houses, million dollar transactions often go through intermediate traders for approval. A billion dollar trade would likely trigger alerts to someone. I also find it hard to believe that this was an accident.
The Obama Regime is doing their damnedest to take down the capitalist free market system, and it’s entirely too coincidental that there have been problems lately. I just know it in my gut that there are orders coming from the WH to fudge numbers to make the market look bad. It gives Obama talking points and buttresses his arguments. Otherwise, he would have no warrant to speak to.
This stinks to high Heaven! When this Regime is out of DC, I hope for full Congressional inquiry into involvement in private industry and potential charges for treason and espionage.
Soros was busy shorting P&G. :)
Thank you for pointing that out, they always give excuse calculated on what they think the average Joe can/would understand if it we’re him in their shoes (as if that would/had or will ever happen).
Orobably.
I believe I heard earlier that Citibank is coming out and saying that it was not a result of any mistakes.
LOL
now THAT is funny
This is nonsense. You don’t enter trades with the words million or billion you use actual digits. Maybe he entered three too many zero’s but this article is worded wrong.
Gee...thought they had software to flag errorneous orders. I know my broker’s software does—have saved me more than once. And my trades never exceeed $50K.
By any chance, was any white male trader in his 40’s seen changing his shirt in an alley somewhere near the Exchange?
Yeesh....quite a difference between BILLION and MILLION if that was indeed what sparked the error.
Yeah, I read the article to my husband and that’s his reaction too. S&P 500 emini’s traded 3 million yesterday.
Would an order entry system even accept an order in the billions?
Latest on Drudge says CITI bank says it wasn’t them.
Another article speculates on someone hacking the trade computer to make outlier short trade.
Cyberterrorism writ large?
Fire sale?
Does anyone in Washington or NYC have a clue?
Yes, it will be sent later on this evening.
Whatever - like the guy in "airplane" who unplugs a cord and all the runway lights go out?
load of crap
Marvelous.
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