Canaccord Genuity Morning Coffee on Knight Capital Group (KCG): Rule One of Knighthood: Ggood Armour
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Price: $3.65 -1.35%
Rating Summary:
2 Buy, 7 Hold, 1 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 13 | Down: 28 | New: 14
Rating Summary:
2 Buy, 7 Hold, 1 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 13 | Down: 28 | New: 14
Trade KCG Now!
Canaccord Genuity Morning Coffee on Knight Capital Group (NYSE: KCG): Rule one of knighthood: good armour.
Knight Capital rose after Bloomberg reported the cause of its $440 million trading loss stemmed from an old set of computer software that was inadvertently reactivated when a new program was installed, according to two people briefed on the matter. Once triggered on August 1st, the dormant system started multiplying stock trades by 1,000, according to the people. Knight’s staff looked through eight sets of software before determining what happened, the people said. “This software problem was an infrastructure problem,” chairman and CEO Thomas Joyce, said in an interview with Bloomberg earlier this month. “It was more of a networking problem as opposed to using quantitative tools to trade.” Knight hasn’t explained in detail what caused the trading losses, which depleted its capital and led to a $400 million rescue that ceded most of the company to a group of investors led by Jefferies Group (NYSE: JEF). The 45-minute delay in shutting down the malfunction has confused some securities professionals, who say that trading programs can typically be disabled instantly.
Shares are trading up 2.7% this morning
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Knight Capital rose after Bloomberg reported the cause of its $440 million trading loss stemmed from an old set of computer software that was inadvertently reactivated when a new program was installed, according to two people briefed on the matter. Once triggered on August 1st, the dormant system started multiplying stock trades by 1,000, according to the people. Knight’s staff looked through eight sets of software before determining what happened, the people said. “This software problem was an infrastructure problem,” chairman and CEO Thomas Joyce, said in an interview with Bloomberg earlier this month. “It was more of a networking problem as opposed to using quantitative tools to trade.” Knight hasn’t explained in detail what caused the trading losses, which depleted its capital and led to a $400 million rescue that ceded most of the company to a group of investors led by Jefferies Group (NYSE: JEF). The 45-minute delay in shutting down the malfunction has confused some securities professionals, who say that trading programs can typically be disabled instantly.
Shares are trading up 2.7% this morning
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