Freak Trade

Like many young punks, Gerson Govea saw himself as a misfit. He is considered the last of the most hardcore members of the "frikis," or "freaks," as Cuba's unique breed of hippy-punk dropouts is known. They usually infect themselves with AIDS in order to get into the relative safety and comfort of a state AIDS clinic.

In market parlance, freak trades have often been referred to as 'fat-finger trades' and punching errors, as they are often claimed to have been executed erroneously due to entry of wrong parameters or pressing of wrong keys on trading terminals.

Also, India's capital markets regulator said in October it would unveil regulations for the cancellation or modification of trades arising from any instances of errant, or freak, trades on the country's stock exchanges.

October future prices on the Nifty jumped 2.8 per cent to a high of 5,996 before paring gains. At these levels, the near month contract (October futures) was priced higher than the next month (November future) prices, which made a high of 5,984.

Brokerage firm Emkay Global has approached the Securities Appellate Tribunal (SAT) against an NSE order rejecting its plea for cancelling an erroneous trade that triggered a 900-point flash crash in market benchmark index Nifty last year.

Brokerage firm Emkay Global today said the National Stock Exchange (NSE) has rejected its application for annulment of an erroneous trade executed by one of its broker, and it is considering to challenge this decision.

Bank of India shares today fell nearly 8 per cent for a brief period on the National Stock Exchange during afternoon trade on speculation of freak trades, but recovered soon to end with gains.

Shares in Bank of India fell sharply before quickly recovering in what some traders describe as a "freak" trade. Trading at Rs 336.65, down 1.2 per cent, Bank of India shares suddenly fell to Rs 314, down 7.8 percent on the day, at around 12:20 p.m. The shares, however, recovered to Rs 339.50.

Shares in Tata Motors Ltd and UltraTech Cement Ltd rose in early trade after briefly plunging as much as 10 per cent during Friday's trading session because of a technology trading glitch from brokerage Religare Capital Markets.

A technology glitch at Religare Capital Markets caused "unintended transactions", the brokerage said on Saturday, a day after deeply discounted sale of large blocks of shares in Tata Motors and UltraTech Cement hit the markets.

Tata Motors and UltraTech Cement shares briefly dropped as much as 10 per cent each, before sharply cutting losses, after a series of shares were sold at lower prices, traders said.

Capital market regulator Securities and Exchange Board of India (Sebi) is looking at introducing a small-duration trading pause and annulment of orders to ring-fence equity investors in a 'flash crash' situation.

Sebi will work on a new policy to annul erroneous trades to prevent a repeat of last week's crash on NSE which had created a panic situation on bourses.

Falling for third day in a row, shares of Emkay Global Financial Services today tumbled 10 per cent, taking the total losses over the last three sessions to 27 per cent.

Emkay Global Financial Services today admitted an error on its part for the 900-point flash crash of the NSE index Nifty on Friday morning, and said it would help the stock exchange in probe into the matter. The shares of the company fell by 10 per cent this morning. They had seen a similar plunge on Friday as well.

Like many young punks, Gerson Govea saw himself as a misfit. He is considered the last of the most hardcore members of the "frikis," or "freaks," as Cuba's unique breed of hippy-punk dropouts is known. They usually infect themselves with AIDS in order to get into the relative safety and comfort of a state AIDS clinic.

In market parlance, freak trades have often been referred to as 'fat-finger trades' and punching errors, as they are often claimed to have been executed erroneously due to entry of wrong parameters or pressing of wrong keys on trading terminals.

Also, India's capital markets regulator said in October it would unveil regulations for the cancellation or modification of trades arising from any instances of errant, or freak, trades on the country's stock exchanges.

October future prices on the Nifty jumped 2.8 per cent to a high of 5,996 before paring gains. At these levels, the near month contract (October futures) was priced higher than the next month (November future) prices, which made a high of 5,984.

Brokerage firm Emkay Global has approached the Securities Appellate Tribunal (SAT) against an NSE order rejecting its plea for cancelling an erroneous trade that triggered a 900-point flash crash in market benchmark index Nifty last year.

Brokerage firm Emkay Global today said the National Stock Exchange (NSE) has rejected its application for annulment of an erroneous trade executed by one of its broker, and it is considering to challenge this decision.

Bank of India shares today fell nearly 8 per cent for a brief period on the National Stock Exchange during afternoon trade on speculation of freak trades, but recovered soon to end with gains.

Shares in Bank of India fell sharply before quickly recovering in what some traders describe as a "freak" trade. Trading at Rs 336.65, down 1.2 per cent, Bank of India shares suddenly fell to Rs 314, down 7.8 percent on the day, at around 12:20 p.m. The shares, however, recovered to Rs 339.50.

Shares in Tata Motors Ltd and UltraTech Cement Ltd rose in early trade after briefly plunging as much as 10 per cent during Friday's trading session because of a technology trading glitch from brokerage Religare Capital Markets.

A technology glitch at Religare Capital Markets caused "unintended transactions", the brokerage said on Saturday, a day after deeply discounted sale of large blocks of shares in Tata Motors and UltraTech Cement hit the markets.

Tata Motors and UltraTech Cement shares briefly dropped as much as 10 per cent each, before sharply cutting losses, after a series of shares were sold at lower prices, traders said.

Capital market regulator Securities and Exchange Board of India (Sebi) is looking at introducing a small-duration trading pause and annulment of orders to ring-fence equity investors in a 'flash crash' situation.

Sebi will work on a new policy to annul erroneous trades to prevent a repeat of last week's crash on NSE which had created a panic situation on bourses.

Falling for third day in a row, shares of Emkay Global Financial Services today tumbled 10 per cent, taking the total losses over the last three sessions to 27 per cent.

Emkay Global Financial Services today admitted an error on its part for the 900-point flash crash of the NSE index Nifty on Friday morning, and said it would help the stock exchange in probe into the matter. The shares of the company fell by 10 per cent this morning. They had seen a similar plunge on Friday as well.