And here we go again.
The Knight Capital Group announced on Thursday that it lost $440 million when it sold all the stocks it accidentally bought Wednesday morning because a computer glitch.Well, that kind of sucks!
The losses are threatening the stability of the firm, which is based in Jersey City. In its statement, Knight Capital said its capital base, the money it uses to conduct its business, had been “severely impacted” by the event and that it was “actively pursuing its strategic and financing alternatives.”Good luck with that!
‘With the events of yesterday, you have to question if this is the beginning of the end for Knight,” said Christopher Nagy, founder of the consulting firm KOR Trading.See ya.
I can haz regulations?
Sorry for the light content in this diary ...
But I thought that this was a poignant underscore to just how incredibly fragile trading firms and the global equity markets have become in our regulation-free era. Coupled with high-frequency algorithm trading that has completely taken over the markets ...
The good news is that, unlike the Corzine company theft that robbed hundreds of millions of dollars from account holders, this probably won't have an impact on customers of the company.
The bad news is that another company will quickly rise and take its place.