Eurex rejects market interruption reports

Eurex rejects market interruption reports

German derivatives exchange Eurex has rejected reports in a UK newspaper that it was forced to interrupt trading due to a miskeyed transaction at an investment banking participant.

Eurex says it cancelled around 200 trades in futures on the Dow Jones Euro Stoxx 50 and Dow Jones Stoxx 50 indices on Wednesday. The cancellation only affected certain trades that occurred within a 45 second period at 5.48 pm.

According to the exchange, order entries by market participants had "had an impact to the extent that orderly trading in the above-mentioned derivatives was not insured". Eurex says it cancelled the transactions and informed all participants that the respective transactions were placed under investigation immediately after the trades had occurred.

Rejecting a report in The Times this morning, Eurex stated that trading neither in these products nor in the market as a whole was interrupted at any time. Also the adverse trading did not result from a single order entry at a wrong price or of a wrong size, states the exchange.

In a statement, Eurex comments: "The Eurex system prevents such errors through various safeguards introduced in May this year after consultation with the market. These safeguards include maximum order sizes per product as well as price limit validation."

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