J-Com's market debut was less smooth than hoped

One of Japan's top financial firms is struggling to limit enormous losses caused by a by one of its brokers. Mizuho Securities, the brokerage arm of Japan's second largest bank, says it will lose at least 220 million dollars because of a typing error. This report from Jonathan Head.

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Under instruction from one of its clients to sell a single share in a Japanese recruitment company at the market price of 610,000 yen, or around 5,000 dollars, one of its brokers made what may be the most expensive typing error in history. Instead the order went out to sell 610,000 shares, more than 40 times the total number of shares in the company, at a price of just one yen each. Mizuho spotted their mistake in less than two minutes but it was too late. The sale had already been authorised and sharp-eyed online investors began snapping up the non-existent shares at bargain prices.

Mizuho, which failed to own up to the mistake for several hours, is now trying to buy back all the shares at something close to the price it sold them for, but it admits it will lose at least 220 million dollars.

The government has demanded an inquiry into how the stock exchange's computer system failed to spot such an obviously nonsensical trade. Mizuho has cancelled its annual office party and there will presumably be fewer Christmas bonuses this year as well.

Jonathan Head, Tokyo

Listen to the words

brokerage arm
the part of the firm that buys and sells shares

The advent of
The beginning of

more accessible
easier to use

a down side
a negative part, a disadvantage

recruitment company
a firm which finds people to work in other organisations or businesses

sharp-eyed
quick to notice things

snapping up
buying very quickly

bargain prices
prices that are much lower than usual

nonsensical
not reasonable or sensible

bonuses
extra money for employees who have worked well

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