electronic trading

The frightening revelations over the past few days that hackers had penetrated certain systems at the Nasdaq stock exchange are reverberating throughout the financial world. Did cyber-crooks gain access to inside information that can used to reap ill-gotten gains?

Remember May 6 when the Dow plunged nearly 1,000 points in intraday trading? The tale of a so-called fat finger, where a trader keyed in billions instead of millions, wasn't what happened. Here's the real story.

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,...