SBI Securities announced on October 14 that unnecessary loss cuts (forced liquidations) were executed for 779 accounts due to a system failure in its FX stock collateral service. The valuation of stocks held as collateral was not reflected in the margin, leading to an erroneous determination of insufficient margin. The failure occurred from the start of trading on the 12th and was restored at 5:30 AM on the 13th.
The cause was an operational error by Internet Initiative Japan (IIJ), which was subcontracted for system operations. When a necessary file was delayed in arriving in the early hours of October 10, the person in charge misunderstood the processing content and executed subsequent processing without importing the collateral information and stock closing price files. The system itself was also designed to proceed with processing without confirming if all necessary files were present.
SBI Securities' basic policy is to restore positions to the state they would have been in had the failure not occurred. 407 accounts that had no further transactions or deposits/withdrawals after the erroneous loss cut were restored on the 13th. For the 372 accounts that had additional transactions, and for users who voluntarily settled to avoid a loss cut, SBI Securities will confirm their intentions and respond individually.
SBI Securities plans to review its operational procedures and oversight of subcontractors, and stated that there was no unauthorized external access or leakage of personal or asset information.
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