Officials from the Mexican stock exchange and the National Banking and Securities Commission are visiting Bulltick Capital Markets’s local brokerage today to review its systems, according to Alejandro Creixell, a managing partner at the firm.
Bulltick was suspended from Mexico trading pending a review after erroneous trades sparked a late-day plunge on the benchmark IPC index on April 13. The trades were later canceled by exchange officials.
Creixell, speaking in a telephone interview from Mexico City, said the selloff was caused by the execution of 8,000 erroneous basket transactions, or transactions involving many stocks at the same time. The firm’s backstop mechanisms failed to catch the mistake, he said.
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