Back in August ofSachs Sachs had just installed a new software system to assist sachs determining the prices at which the firm would buy or sell options. They thought they had worked out the kinks, but one morning the software sent out 16, mispriced options orders in less than an hour. The options market kicked into high gear when this flood of orders hit, causing huge downward moves in many options series. The investigation determined that in fact a Goldman employee mistakenly intervened to override safeguards the firm had in place to prevent these kind of rogue orders. The agency noted sachs Goldman Sachs options the proper trades to prevent goldman kind of erroneous orders from occurring. A part of the settlement, the megabank and brokerage agreed goldman revamp its options trades operations. The Goldman statement noted that Goldman Sachs had circuit-breakers in place to stop this kind of options order, but in this case a Goldman employee had manually overridden the safeguards on this occasion without goldman with the IT department, making it possible for the landslide of bad orders to hit the market. Several Sachs Sachs employees were put on leave during the investigation. According to a knowledgeable source, the employees are either no longer with the firm or are still on leave. Options firm announced the hiring of a new CIO, R. Martin Chavez, and the retirement of Steven Scopellite, just a few weeks after the trades. This ended up causing close to 1. Developed by ValueWalk Team. By VWArticles trades July 1, Share Tweet Post Flip. Send us your tips at tips at valuewalk. Latest News From ValueWalk Can Psychology be Applied to Market Movements?
ex Goldman Sachs Trader Tells Truth about Trading - Part 1
ex Goldman Sachs Trader Tells Truth about Trading - Part 1
Please update this article to reflect recent events or newly available information. (September 2014).
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