Beautiful Virgin Islands

Monday, Aug 04, 2025

Flash crash set off by ‘fat-fingered’ Citigroup trader could cost $50m

Flash crash set off by ‘fat-fingered’ Citigroup trader could cost $50m

Details emerge after London-based employee incorrectly added a zero to a transaction
A “fat-finger error” by a London-based trader at Citigroup that triggered a flash crash across European stock markets could cost the bank at least $50m (£39.8m).

The trader was working from home last month when they incorrectly added an extra zero to a trade, Bloomberg reported, quoting “people familiar with the matter”.

That split-second mistake, on the 2 May bank holiday, wreaked havoc on markets across Europe, triggering a sell-off that reportedly wiped out as much as €300bn (£256bn) at one point.

Trading was briefly suspended in several markets that morning after leading share indices recorded sudden steep declines.

One of the hardest hit was Sweden’s benchmark OMX Stockholm 30 index, which fell by nearly 8% but later recouped most of the losses and ended the day 1.9% lower.

The Stoxx Europe 600 index of Europe’s leading shares lost as much as 3% before closing down 1.5%.

Even though the error was made by a London-based trader, the UK stock market escaped that day’s carnage as it was closed for the bank holiday.

Flash crashes, or brief price collapses, can be caused by human error. Although many aspects of trading have been digitised and automated, parts of the process are still manual, leaving room for such error. So called fat-finger blunders – where the details of a trade are mistyped – have become more common with the rise of high-frequency trading firms.

Until now, few details had emerged about last month’s incident. New York-based Citigroup owned up to the mistake in a statement a few hours later, saying: “This morning one of our traders made an error when inputting a transaction. Within minutes we identified the error and corrected it.”

Bloomberg has uncovered more since. It reported that the bank may record a loss of at least $50m after the incident, though work was still being done on this and the final figure may be higher.

It said the trader was part of the firm’s Delta One trading unit in London and had since been placed on leave while the bank reviewed the incident.

UK regulators are likely to have taken an interest, and the fact that the trader was working from home may be a focal point of any investigation.

However, the report quoted insiders as saying Citigroup took the view that it was human error unrelated the fact the staffer was working from home.

The Delta One unit sells financial products to sophisticated investors such as pension funds, hedge funds and blue-chip corporate clients.

Citigroup has past form. In 2020 it accidentally wired $900m of its own money to creditors of the cosmetics group Revlon.

One of the biggest flash crashes happened on 6 May 2010 when the Dow Jones on Wall Street lost almost 9% of its value within minutes and hundreds of billions of dollars were wiped off share prices.

A spokesperson for Citigroup declined to comment.
Newsletter

Related Articles

Beautiful Virgin Islands
0:00
0:00
Close
OpenAI’s Bold Bet: Teaching AI to Think, Not Just Chat
Tesla Seeks Shareholder Approval for $29 Billion Compensation Package for Elon Musk
Nvidia is cutting prices on its RTX 50-series graphics cards after sales slowed and inventories piled up
Ghislaine Maxwell Transferred to Minimum-Security Prison Amid Ongoing DOJ Discussions
U.S. Tariffs Surge to Highest Levels in Nearly a Century Under Second Trump Term
Matt Taibbi Slams Media for Role in Russiagate Narrative
Pilots Call for Mental Health Support Without Stigma
All Five Trapped Miners Found Dead After El Teniente Mine Collapse
Ong Beng Seng Pleads Guilty in Corruption Case Linked to Former Singapore Transport Minister
BP’s Largest Oil and Gas Find in 25 Years Uncovered Offshore Brazil
Italy Fines Shein One Million Euros for Misleading Sustainability Claims
JPMorgan and Coinbase Unveil Partnership to Let Chase Cardholders Buy Crypto Directly
Declassified Annex Links Soros‑Affiliated Officials and Clinton Campaign to ‘Russiagate’ Narrative
UK's Online Safety Law: A Front for Censorship
Nationwide Protests Erupt in Brazil Demanding Presidential Resignation
Parents Abandon Child at Barcelona Airport Over Passport Issue
Mystery Surrounds Death of Brazilian Woman with iPhones Glued to Her Body
Bus Driver Discovers Toddler Hidden in Suitcase in New Zealand
Switzerland Celebrates 734 Years of Independence Amid Global Changes
U.S. Opens Official Investigation into Former Trump Prosecutor Jack Smith
Leaked audio of Canada's new PM Mark Carney admitting the truth about the Net Zero agenda: "We're gonna make a lot of money off of this."
China Enforces Comprehensive Ban on Cryptocurrency Activities
Absolutely 100% Realistic EVO Series Doll by EXDOLL (Chinese Company) used mainly for carnal purposes
World Economic Forum founder Klaus Schwab: "In this new world, we must accept... total transparency. You have to get used to it. You have to behave accordingly. But if you have nothing to hide, you shouldn't be afraid."
Meet Mufti Hamid Patel, head of Office for Standards in Education in Pakistan
George Soros tells the World Economic Forum: "President Trump is a con man and the ultimate narcissist, who wants the world to revolve around him."
Hamas are STARVING the hostages.
Decline in Tourism in Majorca Amidst Ongoing Anti-Tourism Protests
British Tourist Dies Following Hair Transplant in Turkey, Police Investigate
Poland Begins Excavation at Dziemiany After New Clue to World War II‑Era Nazi Treasure
WhatsApp Users Targeted in New Scam Involving Account Takeovers
Trump Threatens Canada with Tariffs Over Palestinian State Recognition
Trump Deploys Nuclear Submarines After Threats from Former Russian President Medvedev
Trump Sues Murdoch in “Heavyweight Bout”: Lawsuit Over Alleged Epstein Letter Sets Stage for Courtroom Showdown
Germany Enters Fiscal Crisis as Cabinet Approves €174 Billion in New Debt
Trump Administration Finalizes Broad Tariff Increases on Global Trade Partners
J.K. Rowling Limits Public Engagements Citing Safety Fears
JD.com Launches €2.2 Billion Bid for German Electronics Retailer Ceconomy
Azerbaijan Proceeds with Plan to Legalise Casinos on Artificial Islands
Former Judge Charged After Drunk Driving Crash Kills Comedian in Brazil
Jeff Bezos hasn’t paid a dollar in taxes for decades. He makes billions and pays $0 in taxes, LEGALLY
China Increases Use of Exit Bans Amid Rising U.S. Tensions
IMF Upgrades Global Growth Forecast as Weaker Dollar Supports Outlook
Procter & Gamble to Raise U.S. Prices to Offset One‑Billion‑Dollar Tariff Cost
House Republicans Move to Defund OECD Over Global Tax Dispute
Botswana Seeks Controlling Stake in De Beers as Anglo American Prepares Exit
Trump Administration Proposes Repeal of Obama‑Era Endangerment Finding, Dismantling Regulatory Basis for CO₂ Emissions Limits
France Opens Criminal Investigation into X Over Algorithm Manipulation Allegations
A family has been arrested in the UK for displaying the British flag
Mel Gibson refuses to work with Robert De Niro, saying, "Keep that woke clown away from me."
×