Lessons learned

Operational Risk

A spate of incidents at the Tokyo Stock Exchange (TSE) over the past four months has highlighted fundamental weaknesses in its trading system - flaws that have sparked regulatory ire, fury among traders and the resignations of three top exchange officials.

The events have also emphasised how easily trading errors can be made, and shown that operational failures can have a knock-on effect on market prices and lead to significant losses for trading and brokerage firms. More importantly, where the