The recent chaos at the Tokyo Stock Exchange stemming from an erroneous sell order involving J-Com Co. stock underscored poor crisis management on the part of the bourse, a key component of Japan's capitalist economic activities. The TSE needs to do its utmost to strengthen its computerized stock trading system so that it can regain public trust, which is now in tatters.
On Dec. 8, Mizuho Securities Co., a brokerage unit of Mizuho Financial Group Inc., offered a massive erroneous sell order for shares of J-Com, a manpower recruitment firm newly listed on the TSE's Mothers market. A Mizuho employee placed an order to sell 610,000 J-Com shares for 1 yen each, instead of offering to sell one J-Com share for 610,000 yen.
Although a warning that the order was abnormal appeared on the computer screen, the employee continued the operation. After the TSE telephoned Mizuho to find out whether the order was correct, Mizuho noticed the mistake and tried several times to cancel the sell order. But the TSE's computer system would not accept the cancellation request.
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