Fattest Finger Ever Slams Stockholm Stock Exchange With $70 Trillion Buy Order

Tyler Durden's picture


We have seen some supposed 'fat-finger' trades in the last few days but Stockholm's stock exchange was brought to its knees yesterday as a record-breaking order hit the book and halted trading for four hours. A 4.3 billion contract buy order in the OMX30 futures (the Swedish equivalent of the Dow futures) caused the fiasco. This is equivalent to a SEK460 trillion notional exposure - or 131 times the Swedish GDP (around USD70 trillion). As one trader of the exchange noted, via SvD Narangsliv, "This just shows that it can get really bananas with machines" referring to the growing element of automated securities trading on that exchange. What's Swedish for FUBAR?




Via SvD Naringsliv

The giant warrant december semester in OMXS30, a security equivalent to a basket consisting of the Stockholm Stock Exchange's 30 largest companies, and where trade is very important for the overall pricing of the stock market.


The order was on buy side of the order book and covered more than 4.2 billion futures, to a unit price of almost 107,000 dollars. It gives a theoretical value of 459 561 500 030 000, ie nearly 460 trillion dollars. Sweden's gross domestic product, by comparison, amounted in 2011 to more than 3500 billion.


- This just shows that it can go really bananas with machines, writes a trade to Svenska Dagbladet, referring to the growing element of automated securities trading.


According to the Exchange spokesman Carl Norell has no order of that size team into the system. Instead, it is about a parsing incurred in exchange system due to a technical error. The order, Norell writes in an email, anullerades, but still remains a problem why the index derivatives market is closed since just before 10 am this morning.


- Troubleshooting is underway and we communicate constantly updates to our members, writes Carl Norell.


On Thursday, the Stockholm Stock Exchange's derivatives trading open as usual.

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Thu, 11/29/2012 - 11:23 | 3020418 OldE_Ant
OldE_Ant's picture


Wait until everything goes 64bit.   Then we can have some real good ones.

I honestly don't know more than a couple programmers that actually use their own products.   Everyone else is like write, package, and forget until the bug reports roll in.

Quality assurance is the end users job.

Thu, 11/29/2012 - 11:31 | 3020458 UGrev
UGrev's picture

Quality assurance is the end users job.

OMG!! Someone FINALLY gets it!!  Can I show my boss your post? Quite frankly, I'm tired of being the only writer AND tester of my software. I would rather have someone else do the testing, I just want to write the logicz and haz funner doin it. 

Thu, 11/29/2012 - 11:31 | 3020462 recidivist
recidivist's picture

The world is my beta test environment.

Thu, 11/29/2012 - 11:43 | 3020514 Archetype
Archetype's picture

This is the second time in a short while. Probobly done on purpouse by Credit Suisse who is basicaly running the swedish stock market by themselves. If you guys think the market is wrong you should check out the swedish OMXS30 index, its the index for the 30 most traded stocks in the swedish stockmarket. It has become straight out retard mad, algos are roaming it like it is a toy.


And just watch this image of the biggest net buyers and net sellers on the swedish stockmarket and you will understand what I am talking about:


Net buyers of the year:

MLI: Merril Lynch

SAB: Citigroup

CSB: Credit Suisse

NIP: Nomura

DBL: Deutsche bank


Net sellers:

ENS: Skandinaviska Enskilda Bank (SEB)

SHB: Svenska Handelsbanken

CAR: Carnegie

SHD: Svenska Handelsbanken

ABC: AB Sundal Collier


Do I need to mention that the index chart correlates entirely whith the direction of CSB buy or sell pressure? Its a joke. The bank with the biggest turnover (AKA the most ferocious algorithm) is Merill Lynch, they are completely destroyng all trading taking the opposite trades of the entire market and then flipping it around again and so on and so forth. Would love to se a Nanex analysis on the Swedish market. Sorry for my bad english.

Thu, 11/29/2012 - 11:48 | 3020528 fuu
fuu's picture

Great chart.

Thu, 11/29/2012 - 11:46 | 3020521 Pairadimes
Thu, 11/29/2012 - 11:50 | 3020540 Glass Seagull
Glass Seagull's picture

[Ben glares at the Zerohedge reporting and asks] "Who says this was an accident?"

Thu, 11/29/2012 - 11:54 | 3020555 sgoldsby
sgoldsby's picture


Thu, 11/29/2012 - 16:51 | 3021809 Matt
Matt's picture

2^32 - 5. Or -6.

Thu, 11/29/2012 - 12:08 | 3020601 The Onion Of Tw...
The Onion Of Twickenham's picture

Did someone type -6 on a system that hadn't been properly QA'ed?

Thu, 11/29/2012 - 12:13 | 3020622 FiatFapper
FiatFapper's picture

if (contract >= 1000) AlertManager(TerminalID);

Thu, 11/29/2012 - 16:52 | 3021812 Matt
Matt's picture

if (contract < 0) AlertManager(TerminalID);

Thu, 11/29/2012 - 17:45 | 3021976 FiatFapper
FiatFapper's picture

if (ValidContract(ticket) && TraderID.Name != "Bernanke") PlaceTrade();

Thu, 11/29/2012 - 12:36 | 3020708 jtlien
jtlien's picture

The Norwegians would say Uff-DA but since it happened in Sweden they might say hurrah.

There is a saying the Norwegians have that says there is nothing wrong with the Swedes except that they are perfect.

Thu, 11/29/2012 - 12:52 | 3020783 resurger
resurger's picture

Ill fill that no problem

Thu, 11/29/2012 - 13:05 | 3020866 Downtoolong
Downtoolong's picture

Fattest Finger Ever.... it can get really bananas with machines

Or is it the debut of the first Rogue Robot?

Next up, Wall-e buys Asia and shorts the entire world’s oil reserves in largest spread trade ever backed by JPM.  

Thu, 11/29/2012 - 13:29 | 3020988 tocointhephrase
tocointhephrase's picture

Chump change

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