Knight Capital will pay $12M in trading debacle
Financial services company Knight Capital Americas will pay $12 million to settle charges that it violated SEC rules in connection with a costly trading glitch in August 2012.
The Securities and Exchange Commission said Knight didn't have adequate safeguards to limit the risks posed by its access to markets.
Knight Capital Group takes stock trading orders from big brokers such as TD Ameritrade and E-Trade. It routes the orders to exchanges including the New York Stock Exchange. In August 2012, a software glitch sent millions of erroneous orders to the New York Stock Exchange. The malfunction caused 45 minutes of volatile trading and a loss of $440 million for Knight.
Knight Capital is now part of KCG Holdings Inc.
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