New York Times (August 2)
An automated trading program went amok at Knight Capital Group, flooding the NYSE and other markets with orders at the opening bell. This “was the latest black eye for the financial markets. The runaway trading suggests that regulators have not been able to keep up with electronic programs that increasingly dominate the supercharged market and have helped undermine investor confidence in stocks.” Some of the trades were cancelled when markets returned to order at 10:15, but Knight is expected to take a large loss.
An automated trading program went amok at Knight Capital Group, flooding the NYSE and other markets with orders at the opening bell. This “was the latest black eye for the financial markets. The runaway trading suggests that regulators have not been able to keep up with electronic programs that increasingly dominate the supercharged market and have helped undermine investor confidence in stocks.” Some of the trades were cancelled when markets returned to order at 10:15, but Knight is expected to take a large loss.
Tags: Automated trading, Knight, Markets, NYSE, Regulators
Wall Street Journal (January 3)
“For the third year in a row the world’s leading exchange for new stock offerings was located not in New York, but in Hong Kong. And even without counting Hong Kong’s $31 billion in deals, the various exchanges on the Chinese mainland slightly exceeded the $41 billion combined total of Nasdaq and the New York Stock Exchange, according to Dealogic.” The Journal blames the disappointing results on the cumbersome regulatory environment of the U.S. market since passage of the Sarbanes Oxley (SOX) Act.
