Mizuho Financial Group, the Japan-based bank, has won a JPY10.7 billion payment from the Tokyo Stock Exchange (TSE) in a case of bungled trading in 2005 that caused it to incur heavy losses, reported Bloomberg..
Reportedly, in 2005, the bank’s Mizuho Securities unit mistakenly attempted to sell 610,000 shares in J-Com, a Japanese telecommunications company, for JPY1, instead of one share at JPY610, 000, causing a brief turmoil on the Tokyo bourse. Immediately, Mizuho filed a lawsuit in October 2006 seeking JPY41.5 billion in damages for the failure to cancel a mistaken sell order because of a systems fault.
On December 9, 2005, the parent company said that the typing error cost it at least JPY27 billion that was equivalent to 4% of its profit forecast for that fiscal year.
Yoshifumi Kikuchi, head of the dealing division at Tokyo- based Nissan Century Securities, said: “The TSE managed to wrap this up rather cheaply. If the TSE was an online brokerage dealing with retail investors and the same incident happened, it would have to compensate for all the damages,” reported the news agency.
