KCG Holdings (KCG)

[janice shell]

This is one of many instances where 4Kids & 7-10-11 were absolutely dead on with what they've been saying for a while.

I don't recall either one of them saying it would fall prey to a horrific computer error. I only remember a lot of stuff about NSS. And NSS has nothing whatsoever to do with what's happened to Knight.

It doesn't have much to do with anything, come to that.

Firms that make trading algo's that make 5bil US in wrong trades in 30 minutes...NOTHING about that lends an air of manipulation your way?

No firm would "manipulate" its own destruction. And if you've read the articles about the glitch itself, it had nothing to do with "trading algos". According to Knight, "the software glitch was caused by outdated software that multiplied the firm’s stock orders by a factor of 1,000. The old software was accidently triggered when new software was loaded onto their system."

Obviously that can be demonstrated on the tape. The real question is why they couldn't stop it as soon as they realized it was happening.

Outside of Pennyland, Knight is a well-respected company. That's why institutional investors stepped in to help immediately. Sure, they'll profit in the end, but they see value in the firm.