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Nomura subsidiary Instinet Pacific Ltd is fined HK$17.3m for algo and ALP failures
In one case, flawed software and a fat-finger 10x pricing error caused the algorithm to keep out-bidding itself by 20 ticks, affecting the pre-market price. In another case, the software allowed a human trader to override the safety limit 3 times, which "completely defeated its purpose" and caused a 31% price increase in 36 seconds. In the final case, the safety limit didn't function because the software did not allow for the absence of an opening price, knocking a price down by 14%. Lucky buyers!
- Greatview Aseptic Packaging Company Limited
- GUANGDONG INVESTMENT LIMITED
- INSTINET PACIFIC LIMITED
- Nomura Holdings, Inc.
- Renhe Commercial Holdings Company Limited