Knight Capital Says SEC Probing $440M Botched August Trade

Law360, New York (November 9, 2012, 5:35 PM EST) -- Federal regulators are investigating Knight Capital Group Inc. over a botched trade that cost it $440 million this summer, the Jersey City, N.J.-based financial services firm said Friday, just over three months after it raised $400 million in fresh capital to stay afloat.

Knight Capital said in a U.S. Security and Exchange Commission filing that the agency began to conduct examinations into its capital condition as well as its technology soon after it took out a massive erroneous trading position Aug. 1.

“The SEC issued a...
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