Featured image of post Citigroup causes a "flash crash" in European stock markets; one index loses nearly 8% in minutes.

Citigroup causes a "flash crash" in European stock markets; one index loses nearly 8% in minutes.

Inputting mistake led to suspension of trading on several markets after sudden steep falls

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Inputting mistake led to suspension of trading on several markets after sudden steep falls

Highlights

  • Trading was briefly suspended in several European markets after sudden steep declines.
  • Europe Stoxx 600 index of leading shares lost as much as 3% before closing down 1.5%.
  • One of the hardest hit was Sweden’s benchmark OMX 30 index, which fell by nearly 8%, but recouped most of the losses and ended the day 1.9% lower.
  • Flash crashes, or brief price collapses, can be caused by human error.
  • They are common with the rise of high-frequency trading firms and become more common with high-speed firms.
  • In 2020, Citi accidentally wired $900m of its own money to creditors of the cosmetics group Revlon.