SEC Probes Knight Capital's $440M Trading Glitch

Law360, New York (August 3, 2012, 10:31 PM EDT) -- The U.S. Securities and Exchange Commission is reviewing Knight Capital Group Inc.'s software-induced trading hiccup that shocked the stock market Wednesday and caused the brokerage firm to lose $440 million, the regulator said Friday.

SEC Chairman Mary Schapiro said the agency was already investigating what happened and determining what steps should be taken to prevent another software glitch from wreaking havoc on the market.

"In particular, I have asked the staff to accelerate ongoing efforts to propose a rule to require exchanges and other market centers...
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