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!

Organisations

China Dili Group 中國地利集團
Greatview Aseptic Packaging Company Limited 紛美包裝有限公司
GUANGDONG INVESTMENT LIMITED 粵海投資有限公司
INSTINET PACIFIC LIMITED 極訊亞太有限公司
Nomura Holdings, Inc.

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