Share Market: Sometimes it’s hard to imagine how heavy a small mistake can be. A similar incident occurred during trading on the NSE on Thursday when a broker’s wrong click caused a loss of about Rs. 250 crore was lost. According to a media report, in the language of brokerage, it is called Fat Finger Trading(fat finger trading) Is said to be where a broker accidentally presses the wrong key on the keyboard during a transaction which reverses the outcome of his deal. This is by far the largest case in India. The broker is estimated to have lost Rs 200-250 crore. Earlier in 2012, brokerage house Emke Global was also fined Rs. 60 crore was lost.
When and how this error occurred
Between 2.37 pm and 2.39 pm on Thursday, a broker had bid for 25,000 lots on the Nifty during option trading. The market price of each lot at this time was around Rs 2,100 but the broker mistakenly reduced the price to Rs 50 less. Market insiders say that as soon as the order is received, the broker gets Rs. 200-250 crore was lost. Some market analysts claim that this amount is not less than Rs 250 crore under any circumstances.
On the one hand, the broker who placed the order had to suffer such a huge loss, on the other hand, the same incident benefited two brokers in Kolkata to the tune of crores. According to market analysts, one broker has made a direct profit of around Rs 50 crore while the other has made a profit of Rs 25 crore.
Insurance will try to reduce the loss
Although the NSE has not officially commented on the incident, an official said that if the case took place between two brokers and one of them had incurred losses by mistake, it would be reimbursed by the existing insurance. However, the exchange is investigating how such a false trading order was executed, avoiding technical glitches.
In fact, when the issue of fat finger trading first came up in 2012, all the brokerage houses developed a technology that identified and canceled such false trade orders. NSE has also developed a technique to identify if an order is less than the market value. But even in this case, the NSE’s technique did not work.
. Source