Shortly before markets opened on Aug. 1, 2012, Knight was regarded as a powerhouse in electronic market making. A few minutes later, the firm’s new trading algo went rogue, giving rise to a crazed, 45-minute buying spree that at one point led Knight to hold an astounding $7 billion in stocks. The fiasco eventually left the firm with a $440 million loss. Three days later, Knight negotiated a loan and a lifeline thanks to a group of six firms, including Jefferies Group, TD Ameritrade Holding and Stifel Financial.
[Was Knight’s Fiasco Really a Wall Street Success Story?]
Melanie Rodier has worked as a print and broadcast journalist for over 10 years, covering business and finance, general news, and film trade news. Prior to joining Wall Street & Technology in April 2007, Melanie lived in Paris, where she worked for the International Herald ... View Full Bio