Knight Capital faces a $440 million pre-tax loss and its
stock opened 53% lower at today's open after an algorithmic glitch sent almost
150 stocks wild at yesterday's open., Businessinsider reports.
Yesterday the stock plunged 32.82%, or $3.39, to end at
$6.34 a share. Knight said that problem came from new software " in the
company’s market-making unit related to the routing of shares of approximately
150 stocks to the NYSE." The NYSE announced that it could cancel 6
different trades related to the glitch.
Today, Knight's press release says that the company's
capital base has been "severely impacted" but that "the
company's broker/dealer subsidiaries are in full compliance with their net
capital requirements."
Investors are obviously worried, and Knight even
acknowledges (also in the press release) that it's "actively pursuing its
strategic and financing alternatives to strengthen its capital base."
Read more:
http://www.businessinsider.com/knight-capital-is-facing-a-440-million-loss-after-yesterdays-trading-glitch-2012-8#ixzz22OsD7JQ7
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