SEC Fines Knight Capital $12M Over 2012 Trading Debacle

Law360, New York (October 16, 2013, 12:19 PM EDT) -- The U.S. Securities and Exchange Commission on Wednesday fined high-frequency trading house Knight Capital Americas LLC $12 million because it didn't have necessary mechanisms in place to prevent technical glitches that caused $460 million in trading losses in August 2012.

In an administrative order, the SEC said that Knight Capital, which has since merged with Getco LLC to form a firm called KCG Holdings, failed to fix a coding mistake in a router for its high-speed trading computers, ultimately causing hundreds of millions of unwanted trades...
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