Knight Says Loss May Spur Rules to Prevent ‘Knucklehead’ Errors
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A trading loss that almost sent Knight Capital Group Inc. into bankruptcy may spur regulatory changes to protect against future errors by “knuckleheads,” Knight Chief Executive Officer Thomas Joyce said.
Knight was rescued by an investor group after a computer malfunction caused a $440 million trading loss on Aug. 1. The mistake resulted from Knight software that wasn’t properly installed as the market maker prepared for a new NYSE Euronext program meant to attract retail investors, Joyce said.