Ask "The Whale" of JPM if he thought it was a joke when TACGNOL took the otherside of that trade and made them pay dearly to unroll that position.
LONGCAT wasn't wrongcat, in $2.20 after market, out $3.27-$3.29. meow! i don't even want to look at the ticker. it's a madhouse out there, a meooowdhouse!
Here is the real reason for the software glitch: http://www.myvisajobs.com/Visa-Sponsor/Knight-Capital-Group/302636_Visa.htm They, like BATS, "forgot" to institute circuit breaker logic. In the case of Knight, as soon as aggregate losses had reached to 1 to 2 million dollars, the software should have cancelled all open orders and closed all current positions....and provided a log of the most recent trades. An error message would be a nice touch as well. How many more times is this going to happen ? If you're going to trade with software, you must have FAIL SAFE circuit breaker features in the software. Simple concept, right ?
There is absolutely no evidence whatsoever, anywhere, that I had anything to do... with... that magnificent piece of work.
OK Sam, you're absolved. Still, isn't it incredible, the lengths these corporations will go to....to save a few bucks ? In the end, this corp is on-the-ropes as a result of this mentality.
If they dare to open for business as usual next week... my guess is that they'll be finished off without mercy in less than 1 hour.
Knight Said To Get $400M Infusion In Sale Of Convertibles Knight Capital Group Inc. (KCG), stepping back from the brink of insolvency, secured a $400 million infusion today through the sale of convertible bonds, according to a person with direct knowledge of the matter. The investors are private equity firms General Atlantic LLC and Blackstone Group LP and brokerages Stifel Nicolaus & Co. and TD Ameritrade Holding Corp. (AMTD), according to the person, who asked not to be named because the agreements havenât been made public. Knight, whose market-making unit executes about 10 percent of U.S. equity volume, has been fighting for survival since a computer breakdown spewed orders through the stock market Aug. 1 and spurred a $440 million trading loss. Securing additional capital to fund businesses such as market making was viewed as necessary to keep Knight afloat. Analysts at CLSA Credit Agricole Securities wrote last week that bankruptcy was a possibility if it failed to get financing. Knightâs trading loss was bigger than the $365 million cash balance it reported as of June 30 and exceeded its market value of $398 million as of Aug. 3, data compiled by Bloomberg show. The firm turned to Goldman Sachs Group Inc. (GS) on Aug. 1 to buy the firm out of trading positions acquired by mistake when a computer program malfunctioned, a person with knowledge of the matter said. It has until the close of business on Aug. 6 to complete the transaction. Shares Fall Knight shares plunged 75 percent over two days last week to $2.58 in the biggest drop since the company went public in 1998. The decline brought the companyâs market value to $253 million, almost 1/20th the peak of $4.8 billion in 2000, data compiled by Bloomberg show. The stock surged 57 percent the next day to $4.05 as some customers said they were routing stock orders back to the Jersey City, New Jersey-based firm. Knight made it to the weekend after receiving short-term financing for market making, according to a person familiar with the matter who requested anonymity. TD Ameritrade and Scottrade Inc., which sent trades elsewhere for execution after Knightâs software failure, said Aug. 3 they were routing orders back. Citadel, a hedge fund that has a market-making and electronic-trading business, and KKR & Co. walked away from talks, according to people familiar with the matter. Efforts to reach Ken Griffin, founder of Chicago-based Citadel, werenât immediately successful. Kristi Huller, a spokeswoman for New York-based KKR, declined to comment. People trickled in and out of Knightâs Jersey City headquarters this morning, with polo shirts and khakis outnumbering business suits. None would comment on the record to Bloomberg News. Around noon, platters of sandwiches and salads from Vitoâs Italian Deli in Hoboken were delivered. âI seriously doubt they will go out of business,â Kenneth Pasternak, who co-founded Knight in 1995, said in a phone interview from his Ridgefield Park, New Jersey, private equity firm Kabr Real Estate Investment on Aug. 3. Pasternak bought shares in Knight during its two-day plunge. âI just hope they can maintain the innovation. My fear is they will be bought by some big bank and become consumed.â http://www.bloomberg.com/news/print...et-400m-infusion-in-sale-of-convertibles.html
Interestingly Knight is not saying. Outsourcing continues to be corporate America's "dirty little secret".