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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.
Comments (7)
  • Whitehawk
    , contributor
    Comments (3129) | Send Message
     
    Still need more detailed disclosure over what transpired. Was it old code or a networking/infrastructure issue?
    15 Aug 2012, 08:06 PM Reply Like
  • PanamaBob
    , contributor
    Comments (34) | Send Message
     
    "Whitehawk"s" on the right track. Would a "sweep" ask "what's the chance that all hell breaks loose because some geek pushes the wrong button?" (if we can even assume that's what happened). Fox makes avoidance seem likely without information to support its "minimum-maximum" parameters.. .
    15 Aug 2012, 09:09 PM Reply Like
  • AJBaker
    , contributor
    Comments (68) | Send Message
     
    Wait, wut? You mean the big bad regulatory government might have caught the private sector error?
    15 Aug 2012, 10:58 PM Reply Like
  • $CLU
    , contributor
    Comments (207) | Send Message
     
    Over at Nanex.net they believe it was piece of test code that was accidentally left in the software.

     

    Explanation here:
    http://bit.ly/R3sB3H
    15 Aug 2012, 11:05 PM Reply Like
  • sr1977
    , contributor
    Comments (336) | Send Message
     
    Right you are: The test code got uploaded with the new software and the two started trading against each other. No word yet on whether the resulting melt-down validated the new software's trading ability or not...
    16 Aug 2012, 06:07 AM Reply Like
  • rambler1
    , contributor
    Comments (442) | Send Message
     
    SEC always too little too late to the party.
    15 Aug 2012, 11:06 PM Reply Like
  • vstoc
    , contributor
    Comment (1) | Send Message
     
    this was an unintentional error for what ever reason. stop the negativity about the company and wait for a fix hopefully very soon.
    go after the Corzine type crooks.
    16 Aug 2012, 10:56 AM Reply Like
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