Joke of the day.............
Trader in training blunder loses millions
LONDON - A junior trader cost his employers an estimated Stg10 million ($A26.07 million) when a training blunder led him to launch a deal worth billions.
The trader pressed the wrong button on his computer, indicating that someone wanted to sell 130,000 German bond futures contracts, worth more than Stg11.5 billion ($A29.98 billion), the Daily Telegraph newspaper said.
The offer was the largest single trade in German futures, which are usually traded in 10,000 lots.
The Daily Telegraph did not name the trader or the firm involved, but said it was believed to be a German finance house.
The trader's employers are now contractually obliged to carry out the transaction, the newspaper said.
German bond futures used to be traded on the floor, where traders on the London International Financial Futures and Options Exchange bought and sold them using hand signals.
However, now German bond futures are predominantly traded on Eurex, a German-based electronic exchange. Traders told the newspaper that it was easy to accidentally enter the dealing program instead of the training simulation software.
AP
Published: Fri Nov 20 07:19:09 EST 1998 |
