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Trading error costs $440 million

By Sheyna Steiner · Bankrate.com
Thursday, August 2, 2012
Posted: 1 pm ET

Trading was disrupted on the New York Stock Exchange, or NYSE, as a result of new trading software installed at Knight Capital Group, a brokerage firm.

It "resulted in Knight sending numerous erroneous orders in NYSE-listed securities into the market. This software has been removed from the company’s systems," the company's press release read today.

Luckily, clients of Knight Capital were unaffected, but the company itself took a $440 million hit, the Wall Street Journal reported today in the story "Knight Capital: Trading error cost firm $440 million."

The glitch affected trading in more than 150 stocks. Ultimately, the NYSE cancelled trades in six stocks made yesterday between 9:30 a.m. and 10:15 a.m.

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3 Comments
Sheyna Steiner
August 21, 2012 at 12:37 pm

When indeed...speaking of monstrous banks, check out Claes Bell's feature tomorrow, "Should the big banks be broken up?"

Pierre
August 21, 2012 at 12:33 pm

After reading the article on how BofA allowed a depositor to withdraw $1.5 million with little or no control over the account it makes me more emphatic that the general public should not be doing business with these monstrous banks.

John Doe public with income less ttan $250,000 should be doing business with local Credit Unions

when will Americans wake up and start looking after themselves?

APATHY remains!