Typo briefly decimates 99.9% of Israel Corp stock value, halts Tel Aviv Stock Exchange trading

A TASE spokeswoman says the error occurred during a major transaction involving the exchange company, Israel Corporation.

By
August 25, 2013 17:06
TASE drop on August 25, 2013

TASE drop on August 25, 2013 370. (photo credit: Screen shot of TASE website)

The Tel Aviv Stock Exchange (TASE) briefly halted trading on Sunday when a typo sent Israel Corporation stock plummeting 99.9%.

According to a TASE spokeswoman, a trader from a TASE member intending to carry out a major transaction for a different company's stock accidentally typed in Israel Corporation, the third-largest company traded on the exchange. The disparity in prices cause the company's stock value did a nose-dive, from an opening value of NIS 1690 down to NIS 2.10.

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Realizing the error, the trader quickly requested that the exchange cancel the transaction, incurring a NIS 10,000 fee for the trader.

The dramatic plunge in the Israel Corporation stock pulled down the TA-25, an index of the top 25 traded companies, down far enough to trigger automatic rules that halted trading. Once the transaction was cancelled, however, the prices returned to similar levels and trading continued regularly.

Israel Corp stock returned to normal trading levels, ending the trading day about 1% below its opening value, while the TA-25 ended less than a quarter of a percentage point down.


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