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RBS’s Algorithms Are Just Fine, Human Employees Another Story

A trader at RBS has admitted to making a fat finger trade in the EUR/CHF pair Monday, a spokesperson for the bank told Reuters. The error caused a series of algorithmic trades from other traders to flood the market, sending the pair spiking for a short period of time. The trades which took place on the EBS foreign exchange platform sent the currency pair to spike to levels just shy of 1.21, the highest levels seen in a long time…EBS daily charts showed that the euro surged to 1.20928 francs from around 1.2015 within three minutes on Monday as the algorithmic traders went berserk…Initial reports had claimed that it was RBS’s algorithms that caused the spike. However, those reports were later proven wrong. It turns out that it was a simple fat finger trade that caused the spike and algos reacted to send the pair even higher. [MarketWatch, Reuters]

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4 Responses to “RBS’s Algorithms Are Just Fine, Human Employees Another Story”

  1. Guesticle says:

    Fat fingered? I don't know if you've heard but I'm still looking for a personal assistant.

    -L. Tilton

  2. Puck It says:

    You can eat enough to get fat on an RBS salary?

  3. Guest says:

    "The fingers you have used to place your order are too fat. To obtain a special ordering wand, please mash the keyboard with your palm now."

    — King-Size Trader

  4. Orlando says:

    I just had a great read. Thanks for posting this.

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