UBS blames system error for £21bn rogue trade

The bank confirms mistake in placing cross-trade orders in the Tokyo Stock Exchange

UBS: Rogue trade was down to system error

A system error at the Japanese securities arm of investment bank UBS caused a convertible bond order to be sent for £21bn instead of £210,000, the banking giant has admitted.

UBS said the mistake was not due to traders pressing too many zeros on the keyboard and added that it was able to rectify the blunder, which occurred in the Tokyo Stock Exchange's ToSTNeT system.

Since the order was placed after trading hours, the mistake had no real impact on financial markets and was called off at no cost to the bank.

In a statement, UBS said that it "apologises for the error and for any inconvenience caused to market participants."