Trading stopped momentarily in several markets after the fall of the major stock indices for a few minutes just before 10 am. Central European Time. Shares in the Nordic region were hit hardest, although other European stocks also fell slightly on the day stock prices around the world fell. Nasdaq and Euronext NV, which operate stock exchanges across the region, said they were investigating the cause. The Nasdaq said it had seen no reason to cancel the trades. The nature and extent of sales by the Citi group were not immediately clear. Citi declined to comment. Investors believe the incident may have been caused by human error, known in the industry as a “thick finger”.

The Amsterdam Stock Exchange, which is managed by Euronext.

          Photo: Yuriko Nakao / Bloomberg News

Sweden’s OMX Stockholm All-Share Index fell almost 8% before recovering sharply. Denmark’s equivalent index fell more than about 6% over the same period and also recovered substantially. Both closed around 2%. Amsterdam-based Euronext-managed markets also declined before recovering sharply. The Dutch AEX index fell 3% and the Belgian BEL20 fell more than 5%. The French CAC40 fell 3%. These indices closed the day with a drop of more than 1%. Euronext temporarily suspended trading in a bid to reduce its impact on markets, according to a spokesman. The Nasdaq said it used circuit breakers immediately after the crash on large stocks in Scandinavian stock exchanges, including Kone Oyj and Stora Enso Oyj.
Thumbnail transactions can be costly. In 2009, an oil trader in a downturn traded about $ 520 million in crude oil, costing his company $ 10 million in losses. In 2012, financial services company Knight Capital lost $ 440 million from a computer trading problem that entered millions of transactions in less than an hour. Citigroup C 1.10% has a history of untimely errors. In 2020, regulators were ordered to clean up systems designed to protect the bank and its customers, and a $ 400 million fine was imposed. It spends billions of dollars transforming its technology and internal operations, a cost that has worried investors. CEO Jane Fraser said it was the bank’s top priority to do it right. The most recent drop was in August 2020, when Citigroup bankers accidentally paid Revlon Inc.’s bondholders. nearly $ 900 million. Shares of Citigroup rose to $ 48.48 in New York on Monday. Write to Anna Hirtenstein at [email protected] and to David Benoit at [email protected] Copyright © 2022 Dow Jones & Company, Inc. All rights reserved. 87990cbe856818d5eddac44c7b1cdeb8