Friday, August 3, 2012

Software Glitch Cost Trading Firm $440 Million

SecurityWeek RSS Feed Software Glitch Cost Trading Firm $440 Million

Knight Capital Group says that a technical glitch within newly installed trading software caused a bit of a problem on Wednesday, causing some stocks to swing more than 10% in early trading. The snafu cost Knight hundreds of millions of dollars.

According to a statement from Knight Capital, the software glitch resulted in Knight sending numerous erroneous orders in NYSE-listed securities into the market. The mistake was costly, to the tune of nearly $10 million dollars per minute.

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Posted via email from Tony Burkhart

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