I often get criticized by some of my students for for picking on banks for their incompetence but now we have a major broker Knight Capital losing $440 million in trading losses in just 45 minutes because of a "software glitch"...setting off weird trading patterns on the US stockmarket on Wednesday (when the stock lost 32%). Seems to be something to do with algorithmic trading the latest fashion on WallStreet - Personally I don't like the Algo trading one little bit because you are over reliant on the software and if the software is faulty then things will go wrong and this is a huge warning alarm bell of the potential loses that can accrue. I predict more problems for the latest fashion on Wall Street down the road ! Excuse me but please check and double check and treble check your software and programming for errors before letting it loose on the Financial markets. A $10 stock on Monday closes at $2.58 on Thursday !
P.S. It was a $78 stock in 1999 - another stellar performer in the financial sector.
Knight Capital story link
Knight Capital statement
P.S. It was a $78 stock in 1999 - another stellar performer in the financial sector.
Knight Capital story link
Knight Capital statement
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