CSRC Widens Everbright Glitch Probe
Everbright, a state-controlled business, is one of China's largest securities brokerages. Its glitch led to the replacement of the company's president, Xu Haoming, and the CSRC was initially investigating whether Mercrtsoft, the supplier of its system, was at fault for the technical failure of the system.
"On August 16, the arbitrage system with such design defects as program call errors and quota control failure was triggered successively, resulting in massive amount [sic] of market purchase orders being directly submitted to the SSE with total declared purchase of RMB 23.4 billion and actual transaction of RMB 7.27 billion," says a CSRC spokesperson, in a statement. "On the same day, Everbright Securities sold RMB 1.85 billion worth of shares via ETF and sold short 7130 lots of stock index futures contracts."
The expansion of the investigation comes after CSRC's Shanghai bureau recommended a series of remedial measures at the brokerage, which also suffered another recent trading loss in the bond markets due to human error.
"As the first ever case of its kind in China ever since the establishment of China's capital market, this incident is an extreme exception," the CSRC adds. "However, the problems it revealed should alert all participants in the securities and futures industry."
Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.
To access these options, along with all other subscription benefits, please contact info@waterstechnology.com or view our subscription options here: http://subscriptions.waterstechnology.com/subscribe
You are currently unable to print this content. Please contact info@waterstechnology.com to find out more.
You are currently unable to copy this content. Please contact info@waterstechnology.com to find out more.
Copyright Infopro Digital Limited. All rights reserved.
You may share this content using our article tools. Printing this content is for the sole use of the Authorised User (named subscriber), as outlined in our terms and conditions - https://www.infopro-insight.com/terms-conditions/insight-subscriptions/
If you would like to purchase additional rights please email info@waterstechnology.com
Copyright Infopro Digital Limited. All rights reserved.
You may share this content using our article tools. Copying this content is for the sole use of the Authorised User (named subscriber), as outlined in our terms and conditions - https://www.infopro-insight.com/terms-conditions/insight-subscriptions/
If you would like to purchase additional rights please email info@waterstechnology.com
More on Regulation
Lightning strikes: Options boom threatens data overload
Concerns over creaking infrastructure in US options markets are fueling talk of measures to limit the exponential amount of data being generated.
All eyes turn to North America as T+1 arrives
As T+1 settlement becomes a reality in North America, long-lingering questions will get their answers.
Firms worry that lack of ‘explainability’ will be regulatory roadblock for AI
Industry experts share their concerns about advanced AI’s ‘black-box’ nature and how that may attract fragmented regulatory scrutiny.
Caveat creator: GenAI giants’ pledges won’t pre-empt copyright suits
Tech vendors offer indemnities on generative output, but end-users need to check the fine print, warn IP lawyers
Bank-led consortium takes aim at position reporting
Five banks, including Barclays, BNP Paribas, Goldman Sachs and HSBC, have joined forces to mitigate interpretation and implementation errors in position reporting disclosures.
Verafin launches genAI copilot for fincrime investigators
Features include document summarization and improved research tools.
Waters Wrap: Open source and storm clouds on the horizon
Regulators and politicians in America and Europe are increasingly concerned about AI—and, by extension, open-source development. Anthony says there are real reasons for concern.
DSB says industry is ready to meet UPI mandate ahead of deadline
The Unique Product Identifier will be required for certain OTC derivatives in the EU at the end of April, following US adoption in January.