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Case Study #240 — 300 Software Failure Case Studies

Vancouver Stock Exchange index truncation-error bug

Over about 22 months, the Vancouver Stock Exchange's official index drifted to roughly half its true value, a famous early example of accumulated computer arithmetic error.

1982-1983
When it happened
Finance
Sector
#240 of 300
Ranked by documented impact
01 — What Happened

The damage was public. The root cause was preventable.

Over about 22 months, the Vancouver Stock Exchange's official index drifted to roughly half its true value, a famous early example of accumulated computer arithmetic error.

Finance
Sector affected
1982-1983
Date of the event
#240
Rank in the 300 Software Failure Case Studies
1
Distinct root-cause clause identified below
02 — The Root Cause

What the software actually got wrong

The exchange's index-calculation software recalculated the index value after every single trade (thousands of times a day) but always truncated the result to three decimal places instead of rounding it, so tiny downward errors accumulated relentlessly until the index had to be recalculated from scratch and corrected.

01Root Cause

The exchange's index-calculation software recalculated the index value after...

What Happened

The exchange's index-calculation software recalculated the index value after every single trade (thousands of times a day) but always truncated the result to three decimal places instead of rounding it, so tiny downward errors accumulated relentlessly until the index had to be recalculated from scratch and corrected.

How Requs AI Catches This

Requs AI Edge Case flags this exact pattern at the requirements and architecture stage — before a single line of code implementing it exists — so the assumption behind it gets challenged while it is still cheap to fix.

03 — How This Gets Caught Before It Happens

Beyond code coverage and "shall" testing

Root causes like this one rarely show up in code coverage or requirements-compliance testing, because nobody wrote a requirement anticipating the specific edge case that broke. Requs AI Edge Case and Requs AI Software FMEA are built to surface exactly this class of overlooked failure mode — before the software is written.

Requs AI Edge Case

Surfaces this before code exists

Identifies edge cases like this one at requirements and architecture time, using the Common Defect Enumeration to catalog failure patterns seen across hundreds of real-world software failures — including this one.

Requs AI Software FMEA

Connects the failure mode to the hazard

Traces this class of root cause directly to the system-level hazard it can produce, so a defect pattern like this one gets flagged during design review instead of after it ships.

Find the overlooked root causes before they ship.

Schedule a demonstration, or explore how Requs AI Edge Case and Software FMEA use the Common Defect Enumeration.