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April 16, 2012, 11:28 a.m. EDT

Mexican stock exchange suspends Bulltick Capital

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By Anthony Harrup

MEXICO CITY (MarketWatch) -- Mexico's stock exchange said Monday it has suspended trading by the local brokerage house of Bulltick Capital Markets, after an incident Friday in which erroneous trades caused the market's benchmark index to plunge near the close Friday.

In a statement, the exchange said the brokerage house will be suspended until a revision is conducted of its operating conditions in the market.

The stock exchange withdrew the transactions in which Bulltick entered incorrect sell prices for 13 issues into the electronic trading system, which knocked the IPC index down by more than 770 points within a few minutes. Subsequent trades in those issues were also canceled, and the IPC's final closing level was adjusted to 39,137 points, a 0.6% decline from Thursday.

The IPC was off 0.1% at 39,084 points around 10 a.m. EDT Monday.

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