By A Citigroup Inc Trader (who has not been named) working from home over the 2022 May bank holiday weekend has lost his company multimillions of dollars
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The Trader included an extra zero to a trade in May 2022. Citigroup placed the Trader on leave following the discovery.
The trading error caused a sell-off in Swedish stocks which led to some €300bn of losses within just a few minutes in the flash crash that followed in European markets.
Citigroup stands to lose about $50m due to the fat-finger error. Citi are still trying to work out just how much money the Trader’s nuke-finger has cost them.
The Citi Trader’s mistake caused Sweden’s OMX Stockholm 30 Index to plunge 8pc in about five minutes.
The flash-crash recovered most of the losses on the same day.
However the flash-crash of stocks spread across Europeans markets causing stocks to drop in Denmark, France, Germany, Italy and in Norway.
The mistake was probably human error and as a result of working from home. When working from the office, checks can take place.
Citi are trying to generate more profits from share trading and this mistake has hurt Citigroup.
Citi need to focus on the controls Traders have working from home so as to avoid such mistakes in future.
There needs to be a confirmation check by another more senior Trader to okay big trades.
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