Deals
Knight $440 Million Loss Is Said Linked to Dormant Software
This article is for subscribers only.
Knight Capital Group Inc.’s $440 million trading loss stemmed from old computer software that was inadvertently reactivated when a new program was installed, according to two people briefed on the matter.
Once triggered on Aug. 1, the dormant system started multiplying stock trades by one thousand, according to the people, who requested anonymity because the firm hasn’t commented publicly on what caused the error. Knight’s staff looked through eight sets of software before determining what happened, the people said.