As the Knight Capital trading fiasco once again proved, in the race to be first, crashes will happen. But slowing down today’s high-speed marketplace would be akin to going back to the Stone Ages for market participants. High-speed trading is here to stay, and strategies will continue to grow more complex. But over the past two years, there have been a number of high-profile incidents in which an inability to harness the latest technologies that power our markets has cost industry players dearly — both in lost dollars and lost investor trust. Advanced Trading highlights Wall Street’s five biggest tech fails in the past two years.
August 03, 2012
Knight Capital Group’s Trading Glitch, Aug. 1, 2012
An apparent bug in the embattled brokerage’s computer systems triggered a series of errant trades that caused $440 million in losses for Knight Capital in less than an hour. As of this writing, the firm was scrambling to raise money to stay in business. Technology’s role in the disaster has also raised serious questions about whether the complexity and speed of today’s markets mean incidents like these represent the new normal.
[How to Prevent Market Mayhem Like the Knight Fiasco ]
