Business · Companies · 13 hrs ago
SBI Securities mistakenly liquidated positions in 779 FX accounts
SBI Securities says forced sales affected 779 FX accounts between Oct.
12 and early Oct.
13.
The problem involved its stock-collateral service, which lets customers use shares in their securities accounts as collateral for foreign-exchange trading.
A subcontractor's processing mistake left stock collateral out of the calculations, making some accounts appear to have too little collateral.
The system did not check that required files had been received, so it failed to catch the error.
The incorrect calculations triggered forced sales in accounts that should not have been liquidated.
SBI Securities says it will generally restore affected positions to what they would have been without the problem, after checking customers' wishes.
It has already restored positions in 407 accounts that had no further trading or account activity; it will handle the other 372 individually.
The company says no personal or asset information was leaked and plans to strengthen procedures and oversight of its contractors.
SBI Securities mistakenly forced the sale of positions in 779 foreign-exchange accounts.
The forced liquidations took place from October 12 to the early hours of October 13 after stock collateral values were not reflected in the accounts.
SBI Securities said an operational error by subcontractor IIJ and a system design that failed to detect the error caused the incident.
The company said it would generally restore positions to the state they would have been in without the outage, after checking customers’ wishes.
- Who
- SBI Securities customers with 779 FX accounts were affected. An IIJ operations worker made the error.
- What
- Positions were mistakenly liquidated because stock collateral values were not reflected in account calculations.
- When
- From the start of trading on October 12 until the early hours of October 13.
- Where
- SBI Securities’ FX stock-collateral service.
- Why
- An IIJ worker did not rerun a processing step after files arrived late, and the system did not detect that required files were missing.
This story does not have two clearly opposing sides.
A file containing information about stock collateral arrived later than scheduled, and the required processing was not rerun.
The outage led to mistaken forced liquidations in 779 accounts.
SBI Securities conducted maintenance, corrected collateral values and restored positions in 407 accounts.
SBI Securities announced the incident and said it would generally restore affected positions after confirming customers’ wishes.
- Affected accounts
- 779
- Accounts restored
- 407
- Accounts requiring individual handling
- 372
- Subcontractor
- Internet Initiative (IIJ)
- Maintenance
- October 13, 4:00–5:30 a.m.
What people are saying
The impact on business results is minor