The Citigroup employee responsible for the flash crash has now apparently been put on leave.
(Photo: Reuters)
new York According to informed circles, the flash crash in European stock exchange trading in early May, which was based on a typo, will cost Citigroup at least 50 million dollars (47 million euros).
A trader at London-based trading entity Delta One mistakenly entered an extra zero in a transaction in early trading on May 2, according to insiders. Due to a bank holiday, he was working from home.
The blunder triggered a five-minute sell-off in the OMX Stockholm 30 Index, eventually leading to chaos on stock exchanges from Paris to Warsaw, with losses of €300 billion at times.
The employee has since been furloughed, as informed people report. The bank is investigating the incident. So far, it has been determined that the error was due to human error and not the fact that the employee was working from home. A spokeswoman for Citigroup declined to comment.
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In 2018, a routine payment went awry at Deutsche Bank when the company accidentally sent €28 billion to an exchange as part of its day-to-day derivatives trading. But there was no financial damage here. The error was quickly identified.
Last year, a typo caused Barclays stock to fall almost 10 percent. The stock market value of the British bank fell briefly by three billion pounds.
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