KCG down due to rumor of algo gone wild

Discussion in 'Stocks' started by m22au, Aug 1, 2012.

  1. m22au

    m22au

    #11     Aug 1, 2012
  2. RedDuke

    RedDuke

  3. m22au

    m22au

    from the above article:

    "An initial review by Knight indicates that a technology issue occurred in the company's market-making unit related to the routing of shares of approximately 150 stocks to the NYSE," said Knight spokeswoman Kara Fitzsimmons in an emailed statement. She said Knight told its clients to send their orders to other firms.
     
    #13     Aug 1, 2012
  4. I hear they will all be busted. Hope not. F*ck Knight.
     
    #14     Aug 1, 2012
  5. m22au

    m22au

    If that happens, I'll be interested in joining a class action lawsuit.
     
    #15     Aug 1, 2012
  6. I'm gonna go ahead and enter 100 share trades until I exhaust all my buying power. Then I'm gonna call my broker and tell them I fell asleep on my keyboard and see if they'll bust them for me.
     
    #16     Aug 1, 2012
  7. m22au

    m22au

    The thing that really annoys me about the potential for busts in NOK and RSH is that the trades were orderly - it wasn't a big spike out of nowhere.
     
    #17     Aug 1, 2012
  8. 930 to 1015 ET will be busted.
     
    #18     Aug 1, 2012
  9. Occam

    Occam

    Where'd you hear it?

    Should we contact the exchanges before any runing comes out?

    Even in the best of times, Knight's PFOF business model screws the exchanges, retail customers, and lit-exchange traders. The exchanges shouldn't allow them to get around their own bug (not to mention cause collateral chaos if these trades are busted).

    It's in the exchange's interest to force Knight to eat their losses and own their own error.
     
    #19     Aug 1, 2012
  10. Knight is NYSE's biggest customer, biggest trader.
     
    #20     Aug 1, 2012