Knight suffers glitch as Wall Street hit by volatility
Wall Street gyrated wildly, with some shares being halted, as Knight Capital said it suffered a technical glitch in its market making unit.
New York - Wall Street endured a bout of volatility on Wednesday, evoking memories of the "Flash Crash" of 2010, as Knight Capital Group said it suffered a "technical issue" in its market-making unit that affected about 150 shares on the New York Stock Exchange.
Ca ne pouvait tomber a un pire moment pour l'industrie HFT (ou a un meilleur moment pour les anti HFTs) alors que les regulateurs sont en train d'arbitrer.
440 millions de dollars de perte pour Knight Capital! Knight qui peine d'ailleurs a ne pas couler...
C'est un peu un tremblement de terre car ce courtier etait un des pionners du HFT. J'avais pu assister d'ailleurs a une conference a Londres d'un de leur employe.
Getco et Citadelle ont probablement debouche le champagne...
45 minutes avant de reagir quand meme. Comme l'a dit Aridge, ce n'est pas un fat finger, mais un fat brain cette fois ci...
As previously disclosed, Knight experienced a technology issue at the open of trading at the NYSE yesterday, August 1st. This issue was related to Knight's installation of trading software and resulted in Knight sending numerous erroneous orders in NYSE-listed securities into the market. This software has been removed from the company's systems.
Clients were not negatively affected by the erroneous orders, and the software issue was limited to the routing of certain listed stocks to NYSE.
Knight has traded out of its entire erroneous trade position, which has resulted in a realized pre-tax loss of approximately $440 million. Although the company's capital base has been severely impacted, the company's broker/dealer subsidiaries are in full compliance with their net capital requirements. Knight will continue its trading and market making activities at the commencement of trading today. The company is actively pursuing its strategic and financing alternatives to strengthen its capital base.
NYSE Retail Order Pilot Draws Competing Plans from Bats, Nasdaq
NYSE’s effort is an “instrument crafted by our friends at 11 Wall Street in an attempt to garner more retail market share,” Thomas M. Joyce, chairman and CEO of Knight, said today on a conference call. “Let the games begin.”
Market makers that internalize orders as wholesalers can provide better prices and payments to retail brokers, Joyce said. While competition may hurt Knight by shrinking the volume of retail orders it gets, the company’s market-making business at NYSE would offset part of the loss, he said. Knight can “defend our place in the market quite ably,” he added.
Knight's future in balance after trading disaster
(Reuters) - Knight Capital Group Inc fought for survival on Thursday after a $440 million trading loss caused by a software glitch wiped out much of its capital, forcing Knight to seek new funding as its shares plunged as much as 80 percent in two days.
Many of the company's biggest customers, including TD Ameritrade, the No. 1 U.S. retail brokerage by trading volume, and fund giants Vanguard and Fidelity Investments, stopped routing orders through Knight. One of the biggest fears is that the company will collapse, landing trading clients and creditors with losses.
"They have about 48 hours to shore up confidence," said James Koutoulas, head of an advocacy group for former customers of failed brokerages MF Global and Peregrine Financial.
Apres MF Global, FPGBest, va-t-on avoir Knight?
For example, many trading systems were modified this week to conform with a new retail order-taking system introduced at the New York Stock Exchange and to accommodate a French securities transaction tax that took effect on Wednesday.
Finalement la taxe Sarkozy Hollande est bien venue a bout du HFT... Qui l'eut cru!
Les Bronzes font de la politique/finance ou bien les Bronzes font du trading. J'hesite la.
On se croirait en plein film comique ou les personnages, plus maladroits et imbeciles les uns que les autres, obtiennent ce qu'ils desirent par des enchainements fortuits.
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