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)