- Category: The Register
- Created on 02 August 2012
An algorithmic trading software bug is being blamed for a day of wild swings at the New York Stock Exchange – and has resulted in the trader placing the dodgy orders reporting a $US440 million pre-tax loss.
What’s been called a “mini flash crash” by Forbes saw 150 NYSE-traded stocks, from General Electric down to minnows, subject to wild swings before things were brought under control. Knight Capital, the firm fingered for the glitch, responded by telling its customers to use other traders – and has since reported the loss as a result of the Wednesday, August 1 software problem.