FOX Business Network (FBN)’s Senior Correspondent Charlie Gasparino reports the U.S. Securities and Exchange Commission is now examining Knight Capital’s trading irregularities. Gasparino reports that the reason for the trading errors “could be as simple as a ‘fat finger’ trader sending something through or an algorithm gone wrong,” but that “it is serious enough that the SEC is now involved.”
Excerpts from the report are below.
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On Knight Capital Group Inc. (NYSE:KCG)’s stock-trading irregularities:
“The SEC is talking with the NYSE over the irregular activity today with Knight Capital Group Inc. (NYSE:KCG). They’re looking at algorithm problems. It could be as simple as a ‘fat finger’ trader sending something through or an algorithm gone wrong. There are a lot of possibilities here. It is serious enough that the SEC is now involved.”
UPDATE: FOX Business Network’s (FBN) Senior Correspondent Charlie Gasparino reports that after Knight Capital’s trading irregularities today, the company could “face a loss up to $300 million.”
On how much Knight Capital could lose due to today’s stock-trading irregularities:
“Depending on broken trades, Knight could face a loss up to $300 million. The SEC and NYSE could determine the number of broken trades by the end of the day.”