How to handle a fat finger trade in China
5 comments / October 30, 2013
It’s a bit of old news, but received some mail from the Eastern front. Happened on August 16 – Everbright Securities (fantastic name of course) had the Shanghai stock index explode with 6% on a single day. Software glitch, the modern version of a fat finger trade. Never realized the firm even made a profit. Not everybody was happy, see mail text below. Background story here.
How to deal with a fat finger trade in China (Knight take note)
- Hire some jackass from an ‘important US based trading firm’ to write some proprietary trading code for you
- Blow up the Shanghai Stock exchange with nearly 6 % in just a couple of hours
- DON’T ADMIT ANY MISTAKE OR TELL ANYONE ANYTHING UNTIL AFTER THE CLOSE
- During the rest of the trading day put on a 200 delta short in the futures and ETFs at the top of the bubble market you created by fucking up in the first place
- PROFITTTTTT !
- (get banned from Prop trading forever by the regulator because you Insider traded, not because you fucked up)
first,
get banned for Insider Trading as in selling the top because you know you created the move up?
Exactly. That was the reason.
Klinkt als de goede oude tijd. Lekker met mandjes smijten en geld verdienen in de chaos!
Sounds like the good old days. Serve with baskets throw and make money in the chaos!
is that fair translation?