Deutsche Bank ‘to close Japanese trading desk following sell order error’
Deutsche Bank is set to close a Japanese trading desk after investigating erroneous sell orders made last month.
Insiders told Bloomberg that the Asian Quantitative Trading department will be shut down after changes to an automated trading system resulted in misread market data and caused the Nikkei 225 Stock Average to dive on June 1st 2010.
About 180 automated sell orders were placed, amounting to about 16 trillion yen ($183 billion).
Around 50 billion yen’s worth of the orders were executed before the problem was addressed and the transactions canceled.
Deutsche Bank has stopped using the automated trading system and has now reportedly decided to continue trading through other divisions in Japan once it closes down the three-person operation.
A spokesman for the financial institution declined to comment on whether a decision on the department has yet been taken.
Earlier this year, the firm reported net income of €1.8 billion ($2.33 billion) across its operations for the first quarter of 2010.