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Stock Selloff May Have Been Triggered by a Trader Error
Key Excerpts from Article on Website of CNBC/Reuters
Posted: May 17th, 2010
http://www.cnbc.com/id/36999483
In one of the most dizzying half-hours in stock market history, the Dow plunged nearly 1,000 points before paring those losses. According to multiple sources, a trader entered a "b" for billion instead of an "m" for million in a trade possibly involving Procter & Gamble, a component in the Dow. Sources tell CNBC the erroneous trade may have been made at Citigroup. The massive selloff, which began shortly after 2 p.m. ET, amplified concerns about the spreading European debt crisis as the approval of austerity measures by the Greek Parliament sparked renewed rioting in Athens. According to a person familiar with the probe, one focus is on futures contracts tied to the Standard & Poor’s 500 stock index, known as E-mini S&P 500 futures, and in particular a two-minute window in which 16 billion of the futures were sold. Amid the sell-off, Procter & Gamble shares plummeted nearly 37 percent to $39.37 at 2:47 p.m. EDT, prompting the company to investigate whether any erroneous trades had occurred.
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