NEW YORK -
Dec. 6, 2013 -
PRLog --
(December 5, 2013, New York) A trading malfunction on August 1, 2012, affected Knight Capital with losses of almost half a billion dollars. A trading error originated on August 20 at Goldman Sachs has once again shaken investors' confidence in the markets. Furthermore, just a couple of days later, technical issues prompted a three-hour shutdown of the Nasdaq stock market, being the cause communications from NYSE Euronext’s NYSE Arca swamped the system capabilities of its Securities Information Processor (SIP). What could be behind these trading errors is explored in amazing detail by Mr. Edgar Perez in his latest book Knightmare on Wall Street (http://www.knightmareonwallstreet.com/)
, The Rise and Fall of Knight Capital and the Biggest Risk for Financial Markets, exclusively available at http://www.KnightmareonWallStreet.com, book that provides a thrilling minute-by-minute account of the terrifying hours following their August 1, 2012 trading debacle, with news-breaking research regarding Knight Capital’s 17 years of tumultuous existence as an independent company.
Knight Capital announced a staggering loss of $440 million, after issuing an unprecedented number of erroneous orders into the market, at 9:30 A.M. on August 1, 2012, due to an error in installing new software. What followed after this shocking announcement were several rounds of desperate conversations with a number of vulture players who had smelled opportunity and were readying themselves to pick up bargain-priced pieces. On August 6, 2012, CEO Thomas Joyce confirmed that Knight Capital had struck a deal with Jefferies, TD Ameritrade, Blackstone, GETCO, Stephens, and Stifel Financial, staving off collapse days after the trading mishap. While Knight Capital was back in the game, its limping recovery quickly prompted hungry competitors to bid for the entire company. On December 19, 2012, the board decided to accept an acquisition proposal from GETCO rather than Virtu Financial. For GETCO, acquiring Knight Capital represented a gigantic fast forward step. For Knight Capital, it was the end of its wild ride as an independent entity.
Perez is widely regarded as the preeminent global expert in the specialized area of high-frequency trading (
http://www.hftleadersforum.com/). He is author of
The Speed Traders (
http://thespeedtraders.com/), An Insider’s Look at the New High-Frequency Trading Phenomenon That is Transforming the Investing World, published in English by McGraw-Hill Inc. (
http://www.mhprofessional.com/product.php?isbn=0071768289) (2011), 交易快手 (http://www.chinafph.com/
scrp/bookdetail.cfm?
iBookNo=3918)：透视正在改变投资世界的新兴高
交易
, published in Mandarin by China Financial Publishing House (http://www.chinafph.com/
scrp/bookdetail.cfm?
iBookNo=3918)
(2012), and Investasi Super Kilat (http://www.gramedia.com/
index.php/book/
detail/9786020201481/
The-Speed-Traders):
Pandangan Orang dalam tentang Fenomena Baru Frekuensi Tinggi yang Mentransformasi Dunia Investasi, published in Bahasa Indonesia by Kompas Gramedia (http://www.gramedia.com/
index.php/book/
detail/9786020201481/
The-Speed-Traders)
(2012). Perez is course director of The Speed Traders Workshop, How High Frequency Traders Leverage Profitable Strategies to Find Alpha in Equities, Options, Futures and FX (http://thespeedtradersworkshop.com/)
(Hong Kong, Sao Paulo, Seoul, Kuala Lumpur, Warsaw, Kiev, New York, Singapore, Beijing, Shanghai). He contributes to The New York Times (http://www.nytimes.com/
roomfordebate/
2012/08/06/how-
to-regulate-
high-frequency-
trading/regulate-
high-frequency-
trading-in-real-
time) and China’s International Finance News (http://paper.people.com.cn/
gjjrb/html/2012-
06/12/content_
1065901.htm)
and Sina Finance (http://finance.sina.com.cn/)
.
