Four Goldman Sachs employees 'on leave' after trading error

Trading

Computer glitch has led to four employees being placed on administrative leave.

Bloomberg News reports that Goldman Sachs placed four senior technology specialists on administrative leave after a programming error caused the investment bank to send faulty stock-options orders last week, the Financial Times reported.

The newspaper cited a person familiar with the events and didn’t disclose the names of the four employees. Michael DuVally, a spokesman for New York-based Goldman Sachs, declined to comment on the FT report on Sunday.

An internal system that Goldman Sachs uses to help prepare to meet market demand for equity options inadvertently produced orders with inaccurate price limits and sent them to exchanges, a person familiar with the situation told Bloomberg News after the August 20 mishap.

The malfunction caused unintended options orders to flood U.S. exchanges, roiling markets and shaking confidence in electronic-trading infrastructure. Two days later, Nasdaq halted trading for three hours after an unrelated failure left some investors without stock quotes.

To access the complete Bloomberg article hit the link below.

Goldman Places Four on Leave After Options Error, FT Reports

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