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Wednesday, Aug 15
2012, 7:43 PM
The SEC was already looking into Knight Capital's (KCG) risk management procedures at the time...
The SEC was already looking into Knight Capital's (KCG) risk management procedures at the time of it's now infamous trading debacle, says Fox News' Charlie Gasparino. This adds a new twist to the story, says Gasparino, because at the time, SEC officials were conducting what is known as a “sweep” to determine if the firm was in compliance with its new "Market Access" rule. If they had been, it could have prevented the trading glitch. At a minimum, it's possible that the agency might have pointed out the firm's shortcomings before the trading error occurred.