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Good Morning DUSS.. Got my shares and looking to add more on the dips. :)
Loving the DUSS chart for a nice upward move... :)
Morning Dollar.. All very good plays. I like DNDT, SMKY and ADIA. for some big upward moves in due time (near Future).
Knight Capital signed a $400 million deal to cover most of its losses from a trading glitch.
NEW YORK (CNNMoney) -- Knight Capital Group will live to see another trading day, but its investors are not pleased.
After suffering a massive loss from a trading glitch last week, Knight Capital (KCG) struck a deal with a group of investors who purchased a majority stake in the trading firm for $400 million.
Investors will receive 267 million shares of Knight, according to a document filed with the Securities and Exchange Commission on Monday. Ahead of this deal, Knight had roughly 90 million shares outstanding.
Knight Capital's stock dropped more than 30% in premarket trading on news of the deal. That's because the new investment will severely cut into the value of existing shareholders' stakes.
Knight lost about 60% of its value over a three-day period last week, despite a huge rally on Friday.
The firm lost $440 million after a trading software snafu on Aug. 1 that sent numerous erroneous orders in NYSE-listed securities into the market. Some 150 companies listed on the NYSE were affected.
Knight Capital plays a key role on Wall Street by acting as a middleman in the markets, completing investors' orders to buy and sell stocks.
The New York Stock Exchange (NYX) announced Monday morning that it temporarily reassigned custodial duties over nearly 700 stocks to Getco, another high speed trading firm.
Once the rescue deal is officially completed and approved, the New York Stock Exchange said it will hand these stocks back to Knight.
Last week, several clients of Knight suspended trading activity with the firm. But by Friday afternoon, several of those clients, including TD Ameritrade (AMTD) and Scottrade, had resumed trading with Knight. That helped lift shares of Knight by nearly 60% on Friday.
The company did not name the new investors in its SEC document. But according to news reports citing people with familiar with the matter, the group includes TD Ameritrade (AMTD), Blackstone Group (BX), Getco, Stifel Nicolaus (SF), Jefferies Group (JEF) and Stephens Inc.
Knight Capital signed a $400 million deal to cover most of its losses from a trading glitch.
NEW YORK (CNNMoney) -- Knight Capital Group will live to see another trading day, but its investors are not pleased.
After suffering a massive loss from a trading glitch last week, Knight Capital (KCG) struck a deal with a group of investors who purchased a majority stake in the trading firm for $400 million.
Investors will receive 267 million shares of Knight, according to a document filed with the Securities and Exchange Commission on Monday. Ahead of this deal, Knight had roughly 90 million shares outstanding.
Knight Capital's stock dropped more than 30% in premarket trading on news of the deal. That's because the new investment will severely cut into the value of existing shareholders' stakes.
Knight lost about 60% of its value over a three-day period last week, despite a huge rally on Friday.
The firm lost $440 million after a trading software snafu on Aug. 1 that sent numerous erroneous orders in NYSE-listed securities into the market. Some 150 companies listed on the NYSE were affected.
Knight Capital plays a key role on Wall Street by acting as a middleman in the markets, completing investors' orders to buy and sell stocks.
The New York Stock Exchange (NYX) announced Monday morning that it temporarily reassigned custodial duties over nearly 700 stocks to Getco, another high speed trading firm.
Once the rescue deal is officially completed and approved, the New York Stock Exchange said it will hand these stocks back to Knight.
Last week, several clients of Knight suspended trading activity with the firm. But by Friday afternoon, several of those clients, including TD Ameritrade (AMTD) and Scottrade, had resumed trading with Knight. That helped lift shares of Knight by nearly 60% on Friday.
The company did not name the new investors in its SEC document. But according to news reports citing people with familiar with the matter, the group includes TD Ameritrade (AMTD), Blackstone Group (BX), Getco, Stifel Nicolaus (SF), Jefferies Group (JEF) and Stephens Inc.
Thanks for the article slingwing1.. Knight Capital (NITE) is facing big problems. They will not be solved overnight. It may be a good one to play with its volatility.
If you’re a novice trader, i would NOT recommended that you play this stock.
Agree, been doing the same myself Lucky. OCTI will be a good one when it runs. Should move very well with its tiny float.
Good Morning Everyone.
Good Morning FLEXTRADER NATION. Hope everyone had a great weekend!
A few of them hitting on DUSS..
DUSS .0014 x .0015.. Looking thin on the offer today!
ENTB & EQLB look to be having very good days as well.
No indeed.. I'm sure you'll get your 1st FLEXTRADE.. I am sure of that!
Knight Capital gets credit line, but customers stay away
Fri Aug 3, 2012 11:04am EDT
(Reuters) - Embattled Knight Capital Group Inc has obtained a credit line that will allow the brokerage to operate for the day, helping its shares regain some ground, but major customers were still not sending trades to the company on Friday.
In morning trading, Knight's shares jumped more than 30 percent to $3.36 after losing 75 percent over the past two days. However, mutual fund giants Vanguard Group and Fidelity Investments were still not routing trades to Knight Capital, the nation's largest market maker.
Knight Capital told brokers that it has obtained a line of credit that will allow the day's operation, the Wall Street Journal reported. The company's spokesperson was not immediately available for comment.
A software glitch on Wednesday flooded the New York Stock Exchange with unintended orders for dozens of stocks, boosting some shares by more than 100 percent and leaving the largest U.S. retail market maker with a trading loss of $440 million, imperiling its survival.
Securities regulators are looking into the matter closely. The U.S. Securities and Exchange Commission, in concert with other regulatory authorities, is now investigating what happened, a spokesman said late Thursday. The Financial Industry Regulatory Authority also has examiners on-site at the company.
For a market already suspicious that the system might be fundamentally broken after 2010's "Flash Crash" and the botched Facebook IPO in May, the troubles at Knight have only added fuel to the fire.
Barclays Capital, in a Friday note, said Knight's problem was now entirely a question of confidence.
"(Ultimately), and in short order, customers need to have confidence to transact with KCG, because without that revenue generation is impaired, and the impact on earnings consequently can make it difficult for the company to retain employees," analyst Roger Freeman wrote.
The mood outside Knight Capital's offices was dour on Friday, as security warned reporters not to harass employees coming in and out. Police officers were also present, and reporters were told to stay off the company's property.
One staffer, toting a set of golf clubs despite the catastrophe unfolding around him, said, "I don't want to care" when asked how things were going.
Another called the atmosphere at work "quiet, very quiet."
Things could be quieter still on Friday if Knight does not regain some of the major customers it has already lost. Knight was the top retail market maker in 2011 for NYSE- and Nasdaq-listed securities. Market makers execute buy and sell orders on behalf of customers and step in to provide liquidity to ensure orderly trading.
Several large retail brokerages said Thursday they were routing orders to other market makers. Fidelity was not sending trades there on Friday, according to sources familiar with the firm, and Vanguard said it was also avoiding Knight.
On Thursday, TD Ameritrade, Scottrade, E*Trade, BNY Mellon subsidiary Pershing LLC, and Invesco all said they were shifting orders elsewhere.
Knight has set up a room for potential suitors to examine its books as it seeks financing to remain operational, according to a source familiar with the matter. Concerns have surfaced as to whether the company has adequate capital to maintain its trading volume.
(Additional reporting by Angela Moon, Jed Horowitz and Suzanne Barlyn in New York and Sarah Lynch in Washington; writing by David Gaffen and Ben Berkowitz in New York; Editing by Edward Tobin, Lisa Von Ahn and Steve Orlofsky)
Knight Capital gets credit line, but customers stay away
Fri Aug 3, 2012 11:04am EDT
(Reuters) - Embattled Knight Capital Group Inc has obtained a credit line that will allow the brokerage to operate for the day, helping its shares regain some ground, but major customers were still not sending trades to the company on Friday.
In morning trading, Knight's shares jumped more than 30 percent to $3.36 after losing 75 percent over the past two days. However, mutual fund giants Vanguard Group and Fidelity Investments were still not routing trades to Knight Capital, the nation's largest market maker.
Knight Capital told brokers that it has obtained a line of credit that will allow the day's operation, the Wall Street Journal reported. The company's spokesperson was not immediately available for comment.
A software glitch on Wednesday flooded the New York Stock Exchange with unintended orders for dozens of stocks, boosting some shares by more than 100 percent and leaving the largest U.S. retail market maker with a trading loss of $440 million, imperiling its survival.
Securities regulators are looking into the matter closely. The U.S. Securities and Exchange Commission, in concert with other regulatory authorities, is now investigating what happened, a spokesman said late Thursday. The Financial Industry Regulatory Authority also has examiners on-site at the company.
For a market already suspicious that the system might be fundamentally broken after 2010's "Flash Crash" and the botched Facebook IPO in May, the troubles at Knight have only added fuel to the fire.
Barclays Capital, in a Friday note, said Knight's problem was now entirely a question of confidence.
"(Ultimately), and in short order, customers need to have confidence to transact with KCG, because without that revenue generation is impaired, and the impact on earnings consequently can make it difficult for the company to retain employees," analyst Roger Freeman wrote.
The mood outside Knight Capital's offices was dour on Friday, as security warned reporters not to harass employees coming in and out. Police officers were also present, and reporters were told to stay off the company's property.
One staffer, toting a set of golf clubs despite the catastrophe unfolding around him, said, "I don't want to care" when asked how things were going.
Another called the atmosphere at work "quiet, very quiet."
Things could be quieter still on Friday if Knight does not regain some of the major customers it has already lost. Knight was the top retail market maker in 2011 for NYSE- and Nasdaq-listed securities. Market makers execute buy and sell orders on behalf of customers and step in to provide liquidity to ensure orderly trading.
Several large retail brokerages said Thursday they were routing orders to other market makers. Fidelity was not sending trades there on Friday, according to sources familiar with the firm, and Vanguard said it was also avoiding Knight.
On Thursday, TD Ameritrade, Scottrade, E*Trade, BNY Mellon subsidiary Pershing LLC, and Invesco all said they were shifting orders elsewhere.
Knight has set up a room for potential suitors to examine its books as it seeks financing to remain operational, according to a source familiar with the matter. Concerns have surfaced as to whether the company has adequate capital to maintain its trading volume.
(Additional reporting by Angela Moon, Jed Horowitz and Suzanne Barlyn in New York and Sarah Lynch in Washington; writing by David Gaffen and Ben Berkowitz in New York; Editing by Edward Tobin, Lisa Von Ahn and Steve Orlofsky)
OPMG having a very good day.. Up 44%. I think anyone owning more than 5% of the shares is required to put out a SC13G.
Good Luck on your 1st FLEXTRADE and hoping many more to come.
Saw that this morning.. Truly sad!
Probably a good reason why the stock is up today..
TDA is looking to leave Knight Capital Markets. There may be some delays in trades or other issues until everything is cleared up. The company (TDA) will be fine, but they'll need to find a firm to route their trades. Just something to be aware of that's all.
Welcome Rainer to the FLEXTRADER NATION. Very nice call on URHN. Its looking very good today.
Very nice CALL on URHN.. touched .0135 today!
Agree.. DUSS mighty thin to .05 on L2
URHN looking good out of that gate.. UP 45.10%
You're Welcome Janet.. It’s nice to see another friendly peep from Canada here on the board with us. We've got a few friends from The Great White North.
Took a quick look at URHN this morning.. Looks like it could be a runner today and is starting to gap up now.
Agree surfkast. The DUSS L2 is razor thin today. Time to make those monkey shorts cover.
Welcome janetcanada to the FLEXTRADER NATION. Please read the sticky’s at the top of the board. We produce nothing but TOP SHELF picks here.
SIGN UP for the FLEXTRADER NATION Alert List!
http://investorshub.advfn.com/boards/chairmail_sub.asp?board_id=25117
Good Morning Everyone.. Agree, they (NITE) deserves everything they get for sure!
They've (NITE Capital) has been sticking it to traders for a long time.. PAYBACK TIME. hahahaha
GM Siddin. Just posted a few more articles about NITE's losses. They are in bad shape at the moment... I would not be surprised to see them file for BK unless they find a partner or buyer ASAP.
Good Morning Nation. TGIF.. My favorite day of the week!
Good Morning Cube... TGIF.. This has been one wild week.
They need to do something ASAP or they'll be forced into BK..
UPDATE - Why Knight Capital lost $440 million in 45 minutes?
By Stephen Gandel, senior editor August 2, 2012: 4:32 PM ET
The high frequency trading battle between exchanges and market makers is resulting in big losses not just for Wall Street, but, likely, for us too.
Update 11:00 pm
FORTUNE -- In life there are few coincidences, and this one probably isn't either: The day Knight Capital Group's computers nearly blew up the market and lost the firm $440 million in 45 minutes is the same day that the New York Stock Exchange (NYX) launched a new trading system that was, in part, meant to take business away from Knight (KCG).
For the past half decade or so, there has been a tug of war over who completes the buy and sell orders for stocks that average investors like you and I make. It used to happen in the pits of the NYSE. These days, almost none of the trades that folks like you and I make ever get to the exchange. Instead, they get cut off, diverted into the computer systems of Knight or its main competitors Citadel, Citigroup and UBS, which match those with the millions of other orders they collect.
MORE: Should we listen to a bond king trying to time stocks?
And the pace at which these firms have been able to divert traffic from the NYSE has been accelerating. In 2009, about 15% of all trades took place away from the NYSE. Now about a third of all the trades in NYSE-listed shares happen elsewhere.
It's not clear why this battle over individual stock trades is so pitched. Knight pays brokers for its so-called order flow. And it guarantees that individuals get a slightly better price than what they would get at the exchange. Those stock trades get fed into Knight's computers, which use lightning fast trading algorithms to figure out how to make money off the orders the firm has just paid up for. This is, in part, the high frequency trading that you have heard about.
Some say that market makers provide a service. Others say Knight and others seek out the orders of individual investors because they view those orders as so-called dumb flow and easier to trade against. What is clear is that Knight and others have figured out how to make money off the stock trades of you and me in ways that we can't detect but we probably pay for somehow. Eric Scott Hunsader, who runs trading research firm Nanex, estimates market makers have been able to generate $5 billion in profits rapidly trading the orders of individual investors and others in the past seven years.
MORE: Wall Street's hottest investment idea: Your house
On Wednesday, the same day that Knight lost $440 million, the NYSE launched its own computer driven trading system, called the Retail Liquidity Program, that the exchange hopes will reclaim some of the trading volume it has lost to market makers. NYSE hopes RLP will create more competition among traders and brokers and market makers so that more of those orders get filled at better prices on the exchange. The new system also offers financial incentives for brokers to complete their orders on the exchange, similar to the payments long made by Knight and others that lured trades away from NYSE.
Knight says the computer problems it ran into had to do with NYSE's new trading system, but it didn't say what. Tellingly, all of the stocks that Knight's computers did bogus trades in were listed on the NYSE. It's likely that Knight tried to upgrade its own algorithm to allow its computers to do an end around the NYSE's new system. But it messed up somehow. Instead, Knight's computer system, launched on the same day as the NYSE's, went on a trading frenzy, buying and selling millions of shares on its own shortly after both systems were switched on when the market opened at 9:30 Wednesday morning.
Normally that shouldn't have produced any real losses. These weren't actual orders, so Knight's system should have just been buying and selling to itself. But that's not how the world of high frequency trading works. When other traders, i.e. computer systems, saw the spike in activity, they jumped in too.
MORE: NYSE: Hey stock picking on us
Knight disabled the faulty algorithm by 10:15. But by then the damage was done. Knight was out $440 million. Dozens of stocks, including Warren Buffett's Berkshire Hathaway (BRKB), had gyrated up and down, and our faith in the market was shaken once again.
In theory, we should all benefit from this competition, being able to trade at cheaper and cheaper prices. But in practice the "price improvements" that Knight and now NYSE offer are fractions of a fraction of a penny. At best, what we are getting in return is a market that is less stable. At worst, we are getting a system that is picking our pockets.
If this isn't a clear case where we need regulators to step in, I don't know what is.
Update: The original version of this story said the NYSE's computers provide price improvements. In fact the NYSE's new platform hopes to provide better pricing through increased competition.
UPDATE - Why Knight Capital lost $440 million in 45 minutes?
By Stephen Gandel, senior editor August 2, 2012: 4:32 PM ET
The high frequency trading battle between exchanges and market makers is resulting in big losses not just for Wall Street, but, likely, for us too.
Update 11:00 pm
FORTUNE -- In life there are few coincidences, and this one probably isn't either: The day Knight Capital Group's computers nearly blew up the market and lost the firm $440 million in 45 minutes is the same day that the New York Stock Exchange (NYX) launched a new trading system that was, in part, meant to take business away from Knight (KCG).
For the past half decade or so, there has been a tug of war over who completes the buy and sell orders for stocks that average investors like you and I make. It used to happen in the pits of the NYSE. These days, almost none of the trades that folks like you and I make ever get to the exchange. Instead, they get cut off, diverted into the computer systems of Knight or its main competitors Citadel, Citigroup and UBS, which match those with the millions of other orders they collect.
MORE: Should we listen to a bond king trying to time stocks?
And the pace at which these firms have been able to divert traffic from the NYSE has been accelerating. In 2009, about 15% of all trades took place away from the NYSE. Now about a third of all the trades in NYSE-listed shares happen elsewhere.
It's not clear why this battle over individual stock trades is so pitched. Knight pays brokers for its so-called order flow. And it guarantees that individuals get a slightly better price than what they would get at the exchange. Those stock trades get fed into Knight's computers, which use lightning fast trading algorithms to figure out how to make money off the orders the firm has just paid up for. This is, in part, the high frequency trading that you have heard about.
Some say that market makers provide a service. Others say Knight and others seek out the orders of individual investors because they view those orders as so-called dumb flow and easier to trade against. What is clear is that Knight and others have figured out how to make money off the stock trades of you and me in ways that we can't detect but we probably pay for somehow. Eric Scott Hunsader, who runs trading research firm Nanex, estimates market makers have been able to generate $5 billion in profits rapidly trading the orders of individual investors and others in the past seven years.
MORE: Wall Street's hottest investment idea: Your house
On Wednesday, the same day that Knight lost $440 million, the NYSE launched its own computer driven trading system, called the Retail Liquidity Program, that the exchange hopes will reclaim some of the trading volume it has lost to market makers. NYSE hopes RLP will create more competition among traders and brokers and market makers so that more of those orders get filled at better prices on the exchange. The new system also offers financial incentives for brokers to complete their orders on the exchange, similar to the payments long made by Knight and others that lured trades away from NYSE.
Knight says the computer problems it ran into had to do with NYSE's new trading system, but it didn't say what. Tellingly, all of the stocks that Knight's computers did bogus trades in were listed on the NYSE. It's likely that Knight tried to upgrade its own algorithm to allow its computers to do an end around the NYSE's new system. But it messed up somehow. Instead, Knight's computer system, launched on the same day as the NYSE's, went on a trading frenzy, buying and selling millions of shares on its own shortly after both systems were switched on when the market opened at 9:30 Wednesday morning.
Normally that shouldn't have produced any real losses. These weren't actual orders, so Knight's system should have just been buying and selling to itself. But that's not how the world of high frequency trading works. When other traders, i.e. computer systems, saw the spike in activity, they jumped in too.
MORE: NYSE: Hey stock picking on us
Knight disabled the faulty algorithm by 10:15. But by then the damage was done. Knight was out $440 million. Dozens of stocks, including Warren Buffett's Berkshire Hathaway (BRKB), had gyrated up and down, and our faith in the market was shaken once again.
In theory, we should all benefit from this competition, being able to trade at cheaper and cheaper prices. But in practice the "price improvements" that Knight and now NYSE offer are fractions of a fraction of a penny. At best, what we are getting in return is a market that is less stable. At worst, we are getting a system that is picking our pockets.
If this isn't a clear case where we need regulators to step in, I don't know what is.
Update: The original version of this story said the NYSE's computers provide price improvements. In fact the NYSE's new platform hopes to provide better pricing through increased competition.
Knight Capital stock plummets to near $2
By Maureen Farrell August 3, 2012: 7:09 AM ET
Investors are becoming increasingly concerned about the fate of Knight Capital Group (KCG), pushing its stock price closer to $2 in premarket trading Friday.
Shares tumbled nearly 10% to $2.33 early Friday. Knight's stock plummeted 63% Thursday, after falling 33% on Wednesday. Its shares traded around $10 earlier in the week.
The trading execution firm announced Thursday morning a loss of $440 million from a software glitch that caused errant trading in nearly 150 stocks Wednesday shortly after the market opened. Knight is one of the major so-called market making firms that has the ability to execute trades on both major exchanges -- the Nasdaq (NDAQ) and New York Stock Exchange (NYX).
Two online brokerage firms -- Scottrade and TD Ameritrade (AMTD) -- stopped executing orders to trade stocks through Knight Capital until they complete further testing on their systems, according to representatives at both companies.
Related: Why Knight lost $440 million in 45 minutes
E*Trade also diverted its orders away from Knight Thursday, according to a person familiar with the matter. And Citigroup rerouted some of its order flow, said a second person familiar with the matter. Both E*Trade (ETFC) and Citigroup (C) declined to comment.
Knight Capital said it is looking to raise capital in a statement released Thursday morning.
The company did not return repeated requests for comment.
Knight Capital stock plummets to near $2
By Maureen Farrell August 3, 2012: 7:09 AM ET
Investors are becoming increasingly concerned about the fate of Knight Capital Group (KCG), pushing its stock price closer to $2 in premarket trading Friday.
Shares tumbled nearly 10% to $2.33 early Friday. Knight's stock plummeted 63% Thursday, after falling 33% on Wednesday. Its shares traded around $10 earlier in the week.
The trading execution firm announced Thursday morning a loss of $440 million from a software glitch that caused errant trading in nearly 150 stocks Wednesday shortly after the market opened. Knight is one of the major so-called market making firms that has the ability to execute trades on both major exchanges -- the Nasdaq (NDAQ) and New York Stock Exchange (NYX).
Two online brokerage firms -- Scottrade and TD Ameritrade (AMTD) -- stopped executing orders to trade stocks through Knight Capital until they complete further testing on their systems, according to representatives at both companies.
Related: Why Knight lost $440 million in 45 minutes
E*Trade also diverted its orders away from Knight Thursday, according to a person familiar with the matter. And Citigroup rerouted some of its order flow, said a second person familiar with the matter. Both E*Trade (ETFC) and Citigroup (C) declined to comment.
Knight Capital said it is looking to raise capital in a statement released Thursday morning.
The company did not return repeated requests for comment.
Good Morning Cube
Yep.. TDA is their biggest custome and may be looking to leave. If they don't meet min capital requirements... They may need to file for bankruptcy.
Anyone using TDA should be conerned.
Trading Glitch May Cost Knight Capital $170M.. What it means for us??
http://video.cnbc.com/gallery/?video=3000106781
Trading Glitch May Cost Knight Capital $170M.. What it means for us??
http://video.cnbc.com/gallery/?video=3000106781