Golden Bridge May Lose 25 Billion Won on Mistaken Futures Trade
Golden Bridge Investment & Securities Co., a South Korean brokerage, said an employee mistakenly placed sell orders for Kospi 200 index futures, incurring a loss of as much as 25 billion won ($22 million).
About 50,000 contracts were offered and more than 20,000 were traded, the brokerage said in an-email today, without providing further details. The company’s stock fell 7.5 percent to 2,165 won at the 3 p.m. close, the most since November 2009. The benchmark Kospi Index had a 0.3 percent loss.
Golden Bridge had 11.5 billion won of net income in the 12 months ended March 2010, according to a regulatory filing.
“It’s true that there were erroneous orders by our employee, and we’re also checking whether there were any problems in our electronic system,” the Seoul-based company said.
Kong Do Hyun, a spokesman for Korea Exchange Inc., the nation’s bourse operator, said the exchange “is not in a position to comment on the characteristics of orders.”
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