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http://www.guardian.co.uk/technology...ation-ubs-350m
......................my dog knew not to touch this with a barge pole
Mike
......................my dog knew not to touch this with a barge pole
Mike
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Re: UBS "lost" $350 million on Facebook
Wait till they hear about their AOL shares. -
Re: UBS "lost" $350 million on Facebook
hiOriginally posted by Mega View Post
According to the article, UBS wanted to buy 1m shares in Facebook, sent an order to Nasdaq and didn't get any response, so re-submitted the order multiple times .. ending up with many more shares than it wanted and ultimately 350m in losses.
That story doesn't strike me as credible. If you send an electronic order to a brokerage or an exchange and you don't get a response, that is known as a "stuck order". Stuck orders are rare but they occur frequently enough that any competent trading party would have a procedure to deal with them. Hitting the "repeat" key multiple times is not part of that procedure. Basically you have to get the broker or the exchange on the phone to manually resolve. Stuck orders don't arise because of network communication problems, since modern protocols will confirm successful delivery at the network level. They arise only when there is a problem with application-processing on the receiver end.
Once you send an order for X million bucks, then that X million bucks counts towards your limit unless you get an explicit rejection. They just kept hitting the repeat key? Not credible.Comment
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