The July shut down of ASX-administered trades has fostered its first claim in the Federal Court.
The Australian Securities Exchange (ASX) has been served its first claim in the aftermath of the July 25 Sydney Futures Exchange (SFE) trade cancellations.
Six firms are demanding a total of $985,848 from the ASX through a claim lodged in the Federal Court of Australia.
The companies named in the claim are Aminute, as Trustee of the Aminute Superannuation Fund, TransMarket Trading, Firehorse, Plutus Commodity Management, Kestrel Trading and Biskra Aotearoa.
The claimants argue that trader error caused the SFE to be shut down temporarily, causing them to lose money.
Following a review of the incident the ASX said it had taken appropriate action in accordance with its operating rules.
According to market speculation, the trigger for the incident was an input error relating to a spread order to buy bank bill contracts and sell three year bonds. The ASX refutes this.
"The cancelled trades were the result of interaction of the existing orders in the central market and the subsequent entry of participant stop-loss orders," the ASX said.
Fund managers and annual performance reports brim with confidence, no matter how much money has been made or lost, but where does this leave the humble investor?... read more »
Home delivered!
Daily news, weekday mornings
Get the day's news delivered direct to your inbox. Register here (it's free!) and choose 'yes' to receive the InvestorDaily newsletter.
Advance appoints two, hikes fees »
St George Bank's funds management arm, Advance Asset Management, has appointed global property trusts CB Richard Ellis and European Investors to its manager line-up and terminated one of its two domestic managers.
Nestle, CSR, Rinker hire Russell »
Three of Australia's biggest companies have hired Russell Investment Group to run their superannuation accounts.
