8/13/2019 BEPNews03SN Big Mistake

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Business News 03: 200 Million Dollar Typing Error

One of Japan's top financial companies is trying hard to limit verylarge losses caused by one of its brokers. Mizuho Securities, the

brokerage arm of Japan's second largest bank, says it will lose atleast ! million dollars because of a typing error.

The advent of computerised share trading has opened uptraditionally e"clusive stock markets, making them more accessibleto ordinary investors and making the process of buying and sellingshares much faster for professional brokers. #ow Mizuho Securitiesin Japan has found out that there's a downside to all this.

$nder instruction from one of its clients to sell a single share in aJapanese company at the market price of %&!,!!! yen, or around,!!! dollars, one of its brokers made what may be the most

e"pensive typing error in history.

(nstead the order went out to sell %&!,!!! shares, more than )!times the total number of shares in the company, at a price of *ustone yen each. Mizuho spotted their mistake in less than twominutes but it was too late. +he sale had already been authorised

and sharp-eyed online investors began snapping up the shares atbargain prices.

Mizuho, which failed to tell anyone about the mistake for severalhours, is now trying to buy back all the shares at something close tothe price it sold them for, but it admits it will lose at least !million dollars.

+he Japanese government has demanded an inuiry into how thestock e"change's computer system failed to spot such an obviouslynonsensical trade. Mizuho has cancelled its annual office party andthere will presumably be fewer -hristmas bonuses this year as well.

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Glossary:

brokerage arm noun phrase/

the part of the company that buys and sells shares, e.g.

Is the brokerage arm of HSBC the most profitable part of the company?

The advent of phrase/

the beginning of, e.g.

Peoples lives have been transformed by the advent of the internet.

The fall of the Soviet nion marked the advent of a ne! era in !orld

politics.

downside noun/

a negative part, a disadvantage, e.g.

The do!nside of living here" of co#rse" is that it is e$pensive.

nemployment" inflation and greater ine%#ality are often the do!nside ofa market economy.

spotted verb/

saw or noticed someone or something, usually because you are looking

hard, e.g.

I&ve '#st spotted (alcolm ) he&s over there" near the entrance.

If yo# spot any mistakes in the article '#st mark them !ith a pencil.

*+ ing form of verb, The police spotted him driving a stolen car.

*+ %#estion !ord, I soon spotted !hat !as !rong !ith the printer.

sharp-eyed ad*ective/

uick to notice things, e.g.

- sharp)eyed secretary noticed the mistake '#st in time.

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nonsensical to blame all the !orld&s tro#bles on one man

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snapping up phrasal verb/

buying very uickly, usually because something is a lot cheaper than

normal or because it's something that you really want, e.g.

The tickets for the concert !ere snapped #p !ithin three ho#rs of going onsale.

The fall in property prices means that there are a lot of bargains !aitingto be snapped #p.

bargain prices noun phrase/

prices that are much lower than usual, e.g.

The shop is having a closing do!n sale and selling off its stock at bargainprices.

nonsensical ad*ective/

foolish or ridiculous, e.g