How might risk systems at UBS have failed?
Swiss investment bank, has been exposed to a $2.3bn loss from a
position apparently built up by a trader, Kweku Adoboli, who
allegedly inputted false forward-settling trades into the
bank’s systems making the position appear hedged,
when it was not.
have suggested the future settlement date may not have
triggered trade confirmation, delaying detection of the
fictitious trades by the bank’s back
office. No client positions
resulted from unauthorised speculative trading in various
S&P 500, DAX, and EuroStoxx index futures over the last
three months," the bank said. "The positions taken were within
the normal business flow of a large global equity trading house
as part of a properly hedged portfolio."
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