Knight Capital's (KCG) 'Glitch' Started From Multi-Billion Dollar Trade Executed Too Quickly
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According to Fox Business report Charles Gasparino, Knight Capital's (NYSE: KCG) ill-fated day came from one very large fat finger trade.
On his Twitter account, Gasparino posted: "what doomed knight? a $5b trade that was supposed to take place over 5weeks that was executed in 20 mins."
He then replied to another user, saying, "i trust my source program was supposed to be excuted [sic] over extended time; maybe that's history making but thats what happend [sic]."
What's more? Knight Capital might be shopping itself to banks, according to Gasparino. One of the potential bidders could be private equity firm Citadel. Given the now-depressed levels -- shares are down 67 percent over the last two sessions so far -- Knight's market cap has fallen to about $304.5 million. On today's session, Knight is off 50.3 percent following disclosure of massive trading losses resulting from Wednesday's errors.
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On his Twitter account, Gasparino posted: "what doomed knight? a $5b trade that was supposed to take place over 5weeks that was executed in 20 mins."
He then replied to another user, saying, "i trust my source program was supposed to be excuted [sic] over extended time; maybe that's history making but thats what happend [sic]."
What's more? Knight Capital might be shopping itself to banks, according to Gasparino. One of the potential bidders could be private equity firm Citadel. Given the now-depressed levels -- shares are down 67 percent over the last two sessions so far -- Knight's market cap has fallen to about $304.5 million. On today's session, Knight is off 50.3 percent following disclosure of massive trading losses resulting from Wednesday's errors.
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