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User Info KNIGHT SAYS TRADING OUT OF POSITION YIELDED $440M PRETAX LOS in forum [NotSoBreaking]
Zarathustra
Posts: 6034
Incept: 2009-04-29
Silver A True American Patriot!
Funkytown
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"In talks?" what does that mean?

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"And in knowing that you know nothing, that makes you the smartest of all." - Socrates
Drench
Posts: 28631
Incept: 2009-11-10
Green
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It means

smiley smiley
Zarathustra
Posts: 6034
Incept: 2009-04-29
Silver A True American Patriot!
Funkytown
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Reuters: Fidelity Investments Not Routing Orders Through Knight

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"And in knowing that you know nothing, that makes you the smartest of all." - Socrates
Throxxofvron
Posts: 10448
Incept: 2009-02-17
Green
Hyper-Speculative Psycho-Facsistic Parabolic Blow-Off
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Quote:
Knight in talks with Virtu Financial, Silver Lake Partners


Really?

-That would be exquisitely ****ing funny.


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DIONYSUS: " Thou hast no knowledge of the life thou art leading; thy very existence is now a mystery to thee. " -from 'The Bacchantes' By Euripides “During times of universal deceit, telling the truth becomes a revolutionary act.” -George Orwell
Korejdk
Posts: 752
Incept: 2008-03-12
Green
NYC
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Would it be possible for a virus to take over the algo ?

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Up or Down
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You can live and not matter, or matter and never live.
Mayorquimby
Posts: 13916
Incept: 2008-09-18
Green
The Archaic Past
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Down 63% to 2.58 - unreal.

Read that Fidelity and eTrade are no longer routing trades through KCG.

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They who wish to hurt you, work within the law.
- Morrissey

Gold is theft.
Ironman09
Posts: 2813
Incept: 2007-08-08
Green
La La Land
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KCG = 0 or 5 soon ? Critical night tonight.

Knight CEO Considering Bankruptcy Reorganization -Fox Business's Gasparino

Aug 2, 2012 16:41:55 (ET)

Knight Capital Group Inc. (KCG) chief executive Thomas Joyce is considering a bankruptcy reorganization for the market-making company, Fox Business Network's Charlie Gasparino said Thursday, citing sources.

Mr. Joyce might move to sell company assets and look to "emerge as a viable company," Mr. Gasparino reported.

Virtu Financial LLC, a trading firm backed by Silver Lake Partners, isn't interested in Knight Capital at this point, Mr. Gasparino also said.

The Wall Street Journal earlier cited sources as saying Virtu was in talks with Knight on a potential merger or capital infusion.

Website: www.foxbusiness.com

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- Short the Phone Book roll-over to 1330 ( May 6th,2013)

Throxxofvron
Posts: 10448
Incept: 2009-02-17
Green
Hyper-Speculative Psycho-Facsistic Parabolic Blow-Off
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Talks collapsed with Silver Lake Partners.

They're ****ED.

Off to 363 reorganization where the meat can be separated from the bone by the Vultures...

Their berzerk HFT Algo destroyed the Firm in a few hours in a single ****ing trading session.



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DIONYSUS: " Thou hast no knowledge of the life thou art leading; thy very existence is now a mystery to thee. " -from 'The Bacchantes' By Euripides “During times of universal deceit, telling the truth becomes a revolutionary act.” -George Orwell
Drench
Posts: 28631
Incept: 2009-11-10
Green
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Quote:
Knight Capital Group Inc. (KCG) opened its books to potential buyers, including private-equity firms and at least one securities-industry rival, as it seeks an investment or takeover to survive after a $440 million trading loss, said two people with knowledge of the matter.

Knight is working with Goldman Sachs Group Inc. (GS) and Sandler O’Neill & Partners LP as advisers in the rescue talks, said one of the people, who spoke on condition of anonymity because the discussions are private. The company is under pressure to strike a deal within days, the people said.
http://www.bloomberg.com/news/2012-08-02....
Ben
Posts: 6408
Incept: 2009-10-09
Silver
The Distant, Glorious, Past
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And that is how you vapourise assets in record time.

...aaaanndd it's gone!

POOF!

Ed.: Ya know, the speed of this - 12 hours more or less and the firm is Tango Uniform - does not bode well for when other, larger firms and entities give up the ghost.

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"Why are you going to learn French?"
"Because I'm going to France," says Joe.
"I'm from the future. You should go to China."

Zenthunder
Posts: 6834
Incept: 2007-10-11
Green
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being a tech guy I am intensely curious as to what happened....

virus?
ex-employee easter egg?
hack/sobotage?
cosmic ray in your RAM chip for a running program?

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*** FRAUD is NOT a business model.
HOPE is not a business plan!
Grace
Posts: 526
Incept: 2008-10-15
Silver
upstate new york
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Zen, it sounds like they were trying to offset a new NYSE program:

"On Wednesday, the same day that Knight lost $440 million, the NYSE launched its own computer driven trading system, called the Retail Liquidity Program, that the exchange hopes will reclaim some of the trading volume it has lost to market makers. Like Knight, the NYSE's RLP computers use algorithms to figure out when it makes sense to offer a slightly better price than what others are offering, and snatch up stock trades, this time away from Knight and others.

Knight says the computer problems it ran into had to do with NYSE's new trading system, but it didn't say what. Tellingly, all of the stocks that Knight's computers did bogus trades in were listed on the NYSE. It's likely that Knight tried to upgrade its own algorithm to allow its computers to do an end around the NYSE's new system. But it messed up somehow. Instead, Knight's computer system, launched at the same time as the NYSE's, went on a trading frenzy, buying and selling millions of shares for no reason shortly after both systems were switched on, at when the market opened at 9:30 Wednesday morning.

Normally that shouldn't have produced any real losses. These weren't actual orders, so Knight's system should have just been buying and selling to itself. But that's not how the world of high frequency trading works. When other traders, i.e. computer systems, saw the spike in activity, they jumped in too."
http://finance.fortune.cnn.com/2012/08/0....
Bearshort
Posts: 4537
Incept: 2007-09-13
Green
NYC
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I guess the NYSE can brag "my computer can kick your computers ass"?
Did the NYSE make $440 million taking the other side of Knights trading?


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Every day I'm more embarrassed and dismayed by my government.

Zenthunder
Posts: 6834
Incept: 2007-10-11
Green
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lol. Robot wars. OK.

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*** FRAUD is NOT a business model.
HOPE is not a business plan!
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