Citigroup sales hit European stock markets with “rapid crash”

Nasdaq and

Euronext

NV, which operates exchanges across the region, said it was investigating the cause. Nasdaq said it saw no reason to cancel trades.

City Group

c 1.04%

Someone said he is working with the exchanges to determine what happened and why.

“One of our traders made a mistake this morning entering a trade,” a Citigroup spokeswoman said in a statement late Monday. “Within minutes, we identified the error and corrected it.”

Nature and extent of sales by

City Group

It was not immediately apparent.

Investors believe the crash may have been caused by human error, known in industry parlance as “fat finger”.

The Swedish benchmark, OMX Stockholm All-Share, fell nearly 8% before rebounding significantly. The Denmark Equivalent Index fell more than 6% around the same time and also mostly recovered. Both closed down about 2%.

The Amsterdam-based Euronext-managed markets also fell before recovering significantly. The Dutch AEX Index is down 3% and the Belgian BEL20 Index is down more than 5%. France’s CAC40 index fell 3%. These indicators ended the day down more than 1%.

Euronext has suspended trading temporarily in an effort to reduce the impact on the markets, according to a spokesperson. Nasdaq said it used circuit breakers in the immediate aftermath of the crash on major Nordic stocks, including…

cosmic

Oyj and

Stora Insu

Uig.

The fat toe trade can be expensive. In 2009, a Oil dealer on a bender He placed about $520 million in deals for crude oil, resulting in his company incurring $10 million in losses. In 2012, the financial services firm Knight Capital lost $440 million from A Computer trading glitch That entered millions of trades in less than an hour.

Citigroup has a history of surprising mistakes. In 2020, it was Ordered by the organizers To clean intended systems bank protection And its customers were fined $400 million. It is spending billions of dollars to transform its technology and inner workings, a cost that worries investors. CEO Jane Fraser said that The bank’s top priority is to understand the matter properly.

The most recent mistake came in August 2020, when Citigroup bankers mistakenly paid client bond holders

Revlon Corporation.

Nearly 900 million dollars.

On Monday, Citigroup shares rose 1% to $48.71 in New York.

Write to Anna Hirtenstein at [email protected] and David Benoit at [email protected]