The latest shipment of fail has arrived.
In contrast, the recent failure of a broker- age firm on the Korea Exchange (KRX) ended less satisfactorily for market partici- pants. After erroneously placing automat- ed buy and sell options orders, HanMag Securities lost $43.8 million, which ex- ceeded the firm’s capital of $18.8 million. One report indicates KRX had to use cash from an emergency reserve fund set up by the exchange’s brokerage firms to cover the loss. If HanMag files for bank- ruptcy and doesn’t find a buyer, the ex- change’s brokers will be required to replenish the money used from the fund.