UBS makes a $31 billion order error

UBS (UBS) blames a computer glitch for placing off-hour buy and sell orders of Capcom Co. (CCOEF) convertible bonds worth $31 billion (3 trillion yen) and due to mature on March 31. That was 100,000 times more than it intended. The trade was canceled at no cost to UBS by the Tokyo Stock Exchange, according to Bloomberg. Trading of the security was halted at 12:07 p.m. Tokyo time when the error was reported.

UBS issued a statement apologizing for the error and "any inconvenience caused to market participants." While there was no comment from Capcom, trading volume for convertible bonds was small, so no major problem was expected. The total bond sale in December 2001 had been just 15 billion yen.