Trading Anomaly at SBCFX Leaves Thousands of Gold Traders Facing Heavy Losses
00:00/00:00
Listen to this article
1x
Subscribe now
Listen to the full version
Listen to the full version
Investors and Hong Kong police gathered at The Center in Hong Kong’s Central district on Aug. 21 following a trading anomaly at SBCFX that triggered forced liquidations in London gold trades. Photo: Wang Xiaoqing/Caixin
A group of investors and police gathered Friday at the vacated Hong Kong office of international brokerage Star Bridge Capital Group Ltd (SBCFX) after a severe trading anomaly wiped out the accounts of thousands of retail gold traders.
The incident highlights the risks posed by highly leveraged algorithmic trading and cryptocurrency-based deposits in the over-the-counter derivatives market, leaving as many as 3,000 investors on the Chinese mainland and overseas facing substantial losses.
You've accessed an article available only to subscribers
VIEW OPTIONS
Unlock exclusive discounts with a Caixin group subscription — ideal for teams and organizations.
Subscribe to both Caixin Global and Bloomberg - for the price of one.
- RELATED
Share this article
Open WeChat and scan the QR code
Sign in with Google
Sign in with Facebook
Sign in with 财新