Coronavirus market impact led to wave trade fails, weekend clean-up - Business Insider

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270 of Wall Street's top trading staff spent a frantic weekend tidying up a huge pile of failed trades after the coronavirus-driven market chaos

Two crossed lines that form an 'X'. It indicates a way to close an interaction, or dismiss a notification.Huge market volatilty and increased trading volumes as the coronavirus hit the US and Europe in March led to a massive backlog of failed trades which then had to be cleared up, the Financial Times reported Monday.

Simfa used a blue-print it model led for a potential flu pandemic in 2007, which was used the first time in real-life in March and April. Some 270 Wall Street trading staff had to come to the rescue and frantically sort out a backlog of failed trades sparked by the COVID-19 crash.Tuesday the clean-up was led by Simfa, the US trade body that represents brokers, traders, and asset managers.

An emergency interest rate cut carried out by the Fed in March also proved to be insufficient in soothing markets and investors' nerves. Banks may have been left with risks they had not anticipated, making it even more difficult to complete trades had the backlog not been cleared. The world's biggest investors are notoriously skeptical of the stock market's bet for a quick economic recovery — and warning that the 'fantasy' rally will soon come crashing down.

 

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