Knight Capital Loses $440M On Trading Glitch

Law360, New York (August 2, 2012, 1:11 PM EDT) -- Knight Capital Group Inc. lost $440 million when it sold the stock it mistakenly bought Wednesday morning because new trading software went haywire, the brokerage firm said Thursday.

The loss dealt a severe blow to the firm's capital base, leading some to speculate that it was headed for bankruptcy. But the firm insisted Thursday that it would continue to operate as usual and was looking for financing to boost its financial health. Wednesday's loss eclipsed Knight Capital's total revenue for the second quarter, which was $289.3...
To view the full article, register now.