INTERVIEW - Knight CEO Tom Joyce Explains What Went Wrong And How His Firm Lost $440 Million In 30 Minutes
Knight Capital CEO Thomas Joyce on Bloomberg yesterday. Pretty impressive interview given that NITE stock is down from 13 to below 3 in 24 hours, clients and counterparties have deserted the company, and the $440 million lost in 30 minutes of program trading gone hellishly wrong represents 4 years of profits for Knight.
The culprit - a new piece of proprietary Knight software for the NYSE that was installed Tuesday night without being tested first. As a result, in the worst-case scenario, Knight Capital might be forced to shut down. And honestly, it couldn't happen to a more deserving and more corrupt market maker. Fifteen years of constant bid/offer manipulation from these crooks. I can say with complete confidence that there will not be many tears shed across the trading community if and when Knight disappears.
Here's the latest:
- UPDATE - Knight hires Goldman Sachs to Find Buyer
- CARNAGE - $440 Miilion Lost In 30 Minutes
- Regulators Now Watching Knight VERY Carefully to Protect Pension Accounts
- In June Knight CEO told Congress its data centers are ‘most reliable in the industry’