Knight Capital Says Trading Glitch Cost It $440 Million

[gREen]

The Knight Capital Group announced on Thursday that it lost $440 million when it sold all the stocks it accidentally bought Wednesday morning because a computer glitch.

http://dealbook.nytimes.com/2012/08/02/knight-capital-says-trading-mishap-cost-it-440-million/?hp

 

[Gaurish]

Ouch! That's hell lot of costly bug. Should be Added to the list

 

[sharktale1212]

There is something more to the story. I was watching when their "bug" was in action. Running amok for whole 30 minutes, just too long for any sane company to pull the plug.
Funniest quote coming from the CEO was: "We need to be more careful in our testing." Well, duhhh

 

[Hacker]

There is something more to the story. I was watching when their "bug" was in action. Running amok for whole 30 minutes, just too long for any sane company to pull the plug.
Funniest quote coming from the CEO was: "We need to be more careful in our testing." Well, duhhh

What exactly do mean by watching it??

 

[ayanavish]

@sharktale1212 watching, how?

 

[sharktale1212]

Hacker ayanavish

What exactly do mean by watching it??

@sharktale1212 watching, how?

I was looking at some shares on NYSE when their HFT hit the market. It caused many of the stocks to move uncharacteristically. It went for around 30 minutes, it was during the fag end of those minutes when rumors started that Knight Capital was involved.
If you want to see what they did, check this stock WZE (Wizard Software Corporation):
WZE Basic Chart | WIZZARD SOFTWARE CORPORATION Co Stock - Yahoo! Finance

Stock normally trades $4 but thanks to their erroneous HFT went uptill $14.

Now you can imagine the losses which need to be incurred when you are selling those shares ($10 per share actual value)

PS: NYSE cancelled trades above $4.68 so their asses were saved in at least this share.

Better example:
http://in.finance.yahoo.com/q/bc?s=EXC&t=5d&l=on&z=l&q=c&c=