The erroneous trade briefly caused market turmoil in December 2005

A Japanese court has ordered the Tokyo Stock Exchange (TSE) to pay 10.7bn yen ($121m; £73m) in damages for failing to stop a huge trading error in 2005.

The TSE must pay Mizuho Securities the compensation after admitting that a system fault prevented a trader from cancelling an erroneous share sale.

The trader had entered an order to sell 610,000 shares for one yen each instead of one share at 610,000 yen.

The error cost the firm 40.7bn yen. The TSE said it would consider appealing.

Mizuho Securities had asked for compensation of 41.5bn yen.

TSE president Atsushi Saito said: "We are considering many options, including an appeal."

Computer problem

The typing error had briefly caused turmoil on the Tokyo bourse.

The then president of the exchange, Takuo Tsurushima, resigned soon after the incident in December 2005.

He admitted that his computers had not allowed Mizuho to cancel the sale of shares in the telecoms firm J-Com in time.

As well as the compensation order from the Tokyo District Court, the exchange also received a "business improvement order" from the Financial Services Agency.