Chicago Board of Trade (CBoT) and regulators are
investigating whether a trade that sent the mini-Dow contact
spiralling on the morning of 3 July was intentional or a
CBoT officials said they are working internally as a
self-regulatory organisation and with Commodity Futures Trading
Commission (CFTC) in examining a major sell order that sent the
September mini-Dow index futures down 584 points between 9.38
am and 9.39 am. There was also a 576-point drop within that
minute in the December 2003 mini-sized Dow futures contract
which, prior to that, was trading in a narrow 31-point
Initially, industry sources believed it was a "fat finger
trade" or errant trade. But last week, exchange officials met
to piece together just what happened. Bryan Durkin, CBoT senior
vice president of trading operations, told FO Week
that the review was still ongoing and that nothing has been
determined yet. However, he hinted that the trade or trades
could have been intentional.
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