UBS Warburg-Händler gab Verkauf ein von 610,000 Aktien zu Yen ¥16 pro Stück, anstatt 16 Aktien zu Yen ¥610,000 pro Stück. Schaden für die Bank 50 Millionen Dollar und Renommee in Tokio kaputt!
UBS Warburg faces high price for Dentsu error
By Gillian Tett and Bayan Rahman in Tokyo
Published: December 2 2001 12:57 | Last Updated: December 2 2001 16:09
UBS Warburg faces potential losses of millions of dollars after placing an erroneous order to sell shares in Dentsu, the Japanese advertising agency that listed on the Tokyo Stock Exchange on Friday.
UBS Warburg placed a sell order on 610,000 shares at ¥16 each, instead of 16 shares at ¥610,000 each at the start of trade on Friday.
The order was retracted almost immediately but market sources said close to 60,000 shares - almost half of all the shares offered through the IPO and a secondary offering - had already been sold.
UBS Warburg has until the end of trade on Wednesday to settle the transaction.
Rival brokers estimated UBS's losses could run to more than $50m, although the bank on Sunday said the incident would not have a "material effect" on its Tokyo operations.
The mistake, which took the shine off Japan's largest listing this year by market capitalisation, has caused acute embarrassment for UBS, which had hoped the Dentsu IPO would allow it to make a significant splash in the IPO market.
The incident comes at a delicate time for the bank and its Tokyo staff, whose bonuses are likely to be affected. The recent decline in the equity markets has hurt foreign brokers and led many to re-examine their Japanese operations, while leading US banks are pulling ahead and putting pressure on the smaller players.
UBS Warburg, which in recent months has been the fifth largest foreign house in equity trading, said the mistake occurred because there was no system in place in Japan to prevent unorthodox prices being entered into the TSE at the time of an IPO.
Some brokers were surprised that the TSE did not agree to UBS's request to cancel the sell order, since it was clearly a mistake. But the TSE may have feared a lawsuit from investors who had bought the shares in what was a valid transaction.
UBS Warburg faces high price for Dentsu error
By Gillian Tett and Bayan Rahman in Tokyo
Published: December 2 2001 12:57 | Last Updated: December 2 2001 16:09
UBS Warburg faces potential losses of millions of dollars after placing an erroneous order to sell shares in Dentsu, the Japanese advertising agency that listed on the Tokyo Stock Exchange on Friday.
UBS Warburg placed a sell order on 610,000 shares at ¥16 each, instead of 16 shares at ¥610,000 each at the start of trade on Friday.
The order was retracted almost immediately but market sources said close to 60,000 shares - almost half of all the shares offered through the IPO and a secondary offering - had already been sold.
UBS Warburg has until the end of trade on Wednesday to settle the transaction.
Rival brokers estimated UBS's losses could run to more than $50m, although the bank on Sunday said the incident would not have a "material effect" on its Tokyo operations.
The mistake, which took the shine off Japan's largest listing this year by market capitalisation, has caused acute embarrassment for UBS, which had hoped the Dentsu IPO would allow it to make a significant splash in the IPO market.
The incident comes at a delicate time for the bank and its Tokyo staff, whose bonuses are likely to be affected. The recent decline in the equity markets has hurt foreign brokers and led many to re-examine their Japanese operations, while leading US banks are pulling ahead and putting pressure on the smaller players.
UBS Warburg, which in recent months has been the fifth largest foreign house in equity trading, said the mistake occurred because there was no system in place in Japan to prevent unorthodox prices being entered into the TSE at the time of an IPO.
Some brokers were surprised that the TSE did not agree to UBS's request to cancel the sell order, since it was clearly a mistake. But the TSE may have feared a lawsuit from investors who had bought the shares in what was a valid transaction.
