From the Toronto Star: Erroneous trades that sent Kraft Foods Group Inc. up as much
as 29 percent in the first minute of trading were cancelled by exchanges, the
latest incident to fuel scrutiny of the electronic infrastructure of U.S.
markets.
The NASDAQ exchange and NYSE Arca cancelled trades in Kraft
Foods Group Inc. at or above $47.82 executed in the first 60 seconds, the
exchanges said in e-mailed statements. Kraft rose as much as 29 percent to
$58.54 by 9:31 a.m. New York time, according to data compiled by Bloomberg. The
stock ended the session down 1.2 per cent at $44.87.
“While it is difficult to say with any degree of certainty,
it seems that this might be the case of mishandling a buy order through a ‘fat
finger’ incorrect limit or using a far too aggressive order type or algo,” Mark
Turner, head of U.S. sales trading at New York-based Instinet Inc., which accounts
for almost 4 per cent of daily U.S. equities volume, said in an e-mail. “In
either case, the exchanges handled the error in accordance with their error
guidelines.....”
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