Emkay Global Financial Services, which has been held responsible for Friday’s flash crash, wants the National Stock Exchange (NSE) to annul the trades that were caused due to an error by a dealer while executing the trades.
?We are hopeful that this obvious and apparent error would justify the annulment of these trades, and believe in the NSE’s professional management to see the merits for annulment, which is the practice worldwide,? said a stock exchange clarification issued by Emkay on Monday.
On Friday, around 9.50am, the Nifty suddenly fell 900 points or 15.5%. Following the freak trade and the subsequent fall, the marketwide circuit limits got triggered and trading was suspended for 15 minutes.
According to Emkay, a dealer made a bona fide error while executing an order to transact a Nifty cash basket. The error was in entering the value of the order as the quantity of the Nifty basket as a result of which the order got transmitted to the NSE server as a single large Nifty basket order comprising Nifty 50 stocks.
The brokerage has also clarified that while NSE has disabled its trading terminal to facilitate the ongoing probe, the outstanding positions of all the remaining clients are intact.