8, 2005, Mizuho Securities mistakenly placed a
sell order for 610,000 shares in J-Com Co.
A Citigroup Inc trader placed a
sell order for 119,231 shares of the stock at a price of AUD0.024, instead of AUD2.40.
They said in a statement: "An erroneous data entry for a trade resulted in a considerable
sell order being generated."
media, the precipitous fall was partly caused by a trader who placed an erroneous
sell order, sparking a chain of
sell orders across the board.
On-line brokerage firms, Spear Securities and Quick & Reilly Group have a 24-hour daily buy and
sell order. Electronic portfolio management automatically updates the investor's portfolio to reflect every transaction.
The regulator observed that the entities placed buy and
sell orders in a synchronised manner within seconds of each other and reversed the trades within a short time with wide variation in prices of the trades.
All buy and
sell orders entered during the pre-opening of QAMCO must have a price limit.