BlackRock's internal electronic bond-trading system failed because it couldn’t attract a critical mass of customers, even as small dealers stood ready to aid trading.
According to Albert Einstein, the speed of light is the fastest speed there is. But for some Wall Street traders the speed of light-at least as it travels through a fiber-optic cable-just isn't fast enough anymore.
Stock exchange BATS (the third largest stock exchange) reported that they overcharged members $420,000 from 2008 to 2012 for certain orders. BATS allowed some short-sale trades that in some cases were not executed at the best available price, as required by securities laws.
Knight Capital's $457.6m trading error in August is the subject of a formal investigation by the Securities and Exchange Commission.
Knight Capital Group, one of the largest U.S. market makers, invited customers to resume sending orders after resolving a power failure that shut down its trading of equities Tuesday.
A single mysterious computer program that placed orders — and then subsequently canceled them — made up 4 percent of all quote traffic in the U.S. stock market last week, according to the top tracker of high-frequency trading activity. The motive of the algorithm is still unclear.
Knight Capital Group’s quest for a buyer will be a sprint, not a marathon.