Wednesday, February 17, 2010
A trading firm put a large sell order on TASE this afternoon, with an upper limit of 0.01 shekel. The prices of the stocks sold suddenly fell to 0.01 shekel (- 99% of the starting price, in some cases) and the stock exchange collapsed. After many millions of shekels changing hands, TASE computer automatically shut down the market. Now they are working on unmaking those trades. I dont know if they have a legal basis to do that. Orders are orders and they should be paid even if the trade was done by mistake. If not, everyone can claim back their losses from unlucky bets. There cannot be so privileged traders in a market.