Knight Capital Group – KCG – Suffered huge losses due to a software glitch
Knight Capital Group Inc. (NYSE:KCG) $2.58, 0.00 (0.00%) is suffering huge losses due to a software glitch, due to which it suffered losses in tune of four hundred and forty million dollars. Knight shares dipped nearly sixty three percent due to this mistake on Thursday.
“Knight has traded out of its entire erroneous trade position, which has resulted in a realized pre-tax loss of approximately $440 million,” Knight Capital Group stated “Although the company’s capital base has been severely impacted, the company’s broker/dealer subsidiaries are in full compliance with their net capital requirements.”
The shares stared sinking as soon as the news came that the firm has lost $440 million due to a tech error.
“Knight has traded out of its entire erroneous trade position, which has resulted in a realized pre-tax loss of approximately $440 million,” the firm said in a statement. “Although the company’s capital base has been severely impacted, the company’s broker/dealer subsidiaries are in full compliance with their net capital requirements.”
Knight Capital Group Inc. (NYSE:KCG) is speculated to seek additional funds to revive its capital. In order to achieve this, Knight will need to sell assets or surrender to selling a massive portion of its firm as giveaway basement prices. One of the most valued assets for people buying would be the Hotspot FX, the company’s Forex ECN trading network.
Knight Capital Group, Inc. (KCG) is a global financial services firm that provides access to the capital markets across multiple asset classes to a network of clients, including buy- and sell-side firms and corporations. The Company operates in four segments: Market Making, Institutional Sales and Trading, Electronic Execution Services, and Corporate and Other. Its Market Making segment principally consists of market making in global equities and listed domestic options.
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