10 Trading Glitches That Stopped The Markets
The technology issue in its market-making unit affected the routing of shares of about 148 stocks to the New York Stock Exchange. For example, a $4 stock jumped to $15. The chaos lasted only an hour. NYSE believes the only reason the damage wasn’t more widespread is thanks to its circuit breakers.
The snafu cost Knight a cool $440 million in pre-tax losses and nearly destroyed the company. Before the infamous breakdown Knight was the largest trader in U.S. equities, with nearly 17.3% market share in NYSE and 16.9% on Nasdaq. In December of 2012 Knight was acquired by Getco LLC. The merger was completed in July 2013, forming KCG Holdings.