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trades: NSE warns brokers to be alert for ‘fat finger’ trades – Times of India

MUMBAI: The NSE has warned brokers that they need to not place orders that are manner above or under the prevailing market worth, that don’t appear to have any financial logic, nor these which might be being positioned on the excessive ends of the working vary as outlined by the bourse’s guidelines. The warning from the NSE got here after an enormous ‘fat finger’ commerce, an error brought on by punching a improper key, on Thursday afternoon that led to an estimated loss of Rs 250 crore for a dealer.
The costs at which the Nifty choices have been bought have been a fraction of the ruling market worth at the moment.
A report on Friday stated that Vardhaman Global Sharecom, the dealer that had put within the misguided commerce, had written to markets regulator Sebi to look into this error. “Trades arising from such orders placed at unrealistic prices lead to aberrations in the normal price-discovery process,” the NSE round stated.
The bourse warned brokers to desist from placing in such trades. It additionally suggested them “to put in place appropriate internal systems and procedures at their end to ensure that such orders / transactions are not placed on the trading system of the exchange”.

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