Company's software trading glitch cost it $10 million per minute
Found on Ars Technica on Friday, 03 August 2012
Remember Knight Capital Group’s algorithm-driven stock trading glitch from yesterday?
Turned out that 45 minute mistake, the company said in a statement, "has resulted in a realized pre-tax loss of approximately $440 million."
Knight Capital Group said that the loss has "severely impacted" the company’s capital base. That’s finance-speak for "We're in big trouble."
I don't really feel sorry for them at all. After all, they are just toying around with large sums of money and leave the trading to a piece of software to maximize profits instead of investing with a solid plan.