Sun Hung Kai Investment Services has been fined for erroneous transactions, reports The Standard.
The Securities and Futures Commission has reprimanded Sun Hung Kai Investment Services Limited and fined the investment house HK$1.5 million ($US1.93million )for internal control failures relating to an erroneous buy order for two billion shares of China Life Insurance Company Limited.
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An account executive of the investment firm received an order from a client to buy 25,000 shares of China Life at HK$18.82 ($US 2.43)The account executive punched in ”2,500,018,000” shares as the order quantity.
The dealing system of SHKIS automatically split the erroneous order into 834 smaller orders which were then sent to the market. Sun Hung Kai Investment’s real-time credit controls failed to filter the erroneous order due to an incorrect setting in the credit rules.
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