Connect with us

Hi, what are you looking for?

Capital Business
Capital Business

World

Tokyo bourse ordered to pay 120m dollars

TOKYO, Dec 4 – A Japanese court on Friday ordered the Tokyo Stock Exchange to pay compensation of more than 120 million dollars over its failure to stop a massive trade blunder in December 2005.

The lawsuit against Asia\’s largest bourse was filed by Mizuho Securities – part of Japan\’s second-biggest bank, Mizuho Financial Group – which demanded 41.5 billion yen (470 million dollars) in compensation.

The TSE has admitted that a fault in its system prevented a Mizuho Securities trader from cancelling the erroneous order, caused by a simple typing error which left the firm saddled with a loss of 40.7 billion yen.

The trader punched in an order to sell 610,000 shares in a telecom firm at one yen each instead of one share at 610,000 yen, briefly causing turmoil on the Tokyo bourse, whose head resigned soon afterward to take responsibility.

Mizuho Securities said the claim reflected the losses on sales completed after the first cancel instruction was made and other expenses.

The Financial Services Agency (FSA) also slapped a "business improvement order" on the Tokyo exchange.

The Tokyo District Court ruled that the TSE must pay compensation of 10.7 billion yen (121.44 million dollars) to the securities firm.

After the incident, Mizuho Financial Group reported the typing error had caused the company\’s net profit to decline by 6.8 percent in the nine months to December 2005 from a year earlier.

Click to comment
Advertisement

More on Capital Business

Executive Lifestyle

NAIROBI, Kenya, Mar 12 – The country’s super wealthy individuals are increasing their holding of bonds, gold and cash, a new report by Knight...

Ask Kirubi

NAIROBI, Kenya, Mar 9 – Businessman and industrialist Dr. Chris Kirubi has urged members of the public to exercise extreme caution when making any...

Ask Kirubi

NAIROBI, Kenya, Mar 24 – Businessman and industrialist Dr. Chris Kirubi is set to own half of Centum Investment Company PLC, following a go-ahead...

Ask Kirubi

It is without a doubt that the COVID-19 pandemic has caught the whole world by surprise. Although its full impact is yet to be...

Headlines

NAIROBI, Kenya, Mar 18 – Commercial Banks have been ordered to provide relief to borrowers on their personal loans, with loans eligible from March...

Kenya

NAIROBI, Kenya, Jun17 – Kenya’s tea leaves manufacturer Kericho Gold, has been awarded the Superbrands Seal by Superbrands East Africa for their quality variety...

Coronavirus

NAIROBI, Kenya, Apr 13 – As the local telecommunications industry gears up to roll out 5G networks in the country, the Communications Authority of...

Coronavirus

NAIROBI, Kenya, Mar 22 – Airtel Kenya is offering free internet access for students in order to enable continued learning at home in the...