[London, 2nd Reuters]–The Stockholm stock market’s “flash crash” that caused the European stock market plunge on the 2nd was triggered by a single sell order placed by Citigroup. However, I found out from the story of the related sources.
Sweden’s OMX Stockholm 30 index temporarily fell 8% on this day as the UK was a holiday and trading volumes declined. The decline was chained to other markets such as Denmark, Norway, Germany, Italy and France.
The background to this was a miscalculation related to an index in Nasdaq, which incorporates Swedish companies, according to people familiar with the matter.
Nasdaq earlier announced that there was one sell-side order behind the plunge. No system failure was confirmed.
Citi declined to comment.