According to CNN Knight Capital Group (KCG) was behind a
series of bizarre moves in otherwise thinly traded stocks early Wednesday.
Knight spokesperson Kara Fitzimmons acknowledged that
"a technology issue" occurred in its market-making unit that affected
how shares for some 150 NYSE-listed stocks were routed. "Knight notified
its market-making clients this morning to route listed orders away," she
said in a statement, adding that the company continues to investigate.
Knight's shares dropped more than 20% after traders saw
extreme volume spikes in a number of stocks, including preferred shares of
Wells Fargo (JWF) and semiconductor company Spansion (CODE). Both stocks, which
see roughly 100,000 trade per day, had changed hands more than 4 million times
by late morning.
The New York Stock Exchange said it is investigatong trading
activity in 140 stocks between the market's open and 10:15 a.m ET….
Get the whole story at http://buzz.money.cnn.com/2012/08/01/trading-glitch/?iid=HP_LN
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