A trading error triggered large swings in Mondi’s share price
- A broker entered an erroneous Mondi trade.
- Some traders may not be happy with the way the JSE handled the error.
- Mondi's share price saw massive moves this week.
A trading error on the JSE this week triggered large swings in packaging and paper group Mondi Ltd’s share price.
"One of the member firms entered an erroneous order which resulted in a number of error trades in Mondi Ltd shares in the closing auction on 30 April 2018," director for market regulation at the JSE, Shaun Davies told Business Insider South Africa.
The error transactions in the closing auction resulted in the Mondi share price closing 5% higher than it would have had those trades not gone trough.
The JSE says it took the decision in terms of the JSE rules to cancel all trades in Mondi shares during the closing auction on 30 April, as the price at which all of those trades were executed was a consequence of the error.
This (along with the fact that it went ex-dividend) contributed to Mondi losing a whopping 9.5% to R329.40 per share on Wednesday, making it the biggest loser on the JSE on the day. The share also went ex-dividend
Derivatives Trader, Marco Olevano was among peeved market participants.
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