Knight Capital losses spur focus on algo risk management

A dark Knight for algos

A meat cleaver cutting through the word losses

When a rogue algorithm racked up $440 million in losses for Knight Capital on August 1, other firms involved in automated trading looked in the mirror. “Management wanted to know whether the same thing could happen here,” says the head of electronic trading at one large UK bank, wearily. “So we reviewed the controls, double-checked our monitoring processes and came to the conclusion that it couldn’t.”

Knight Capital probably thought the same. The firm was no algorithmic novice, nor was it tradi

To continue reading...

You need to sign in to use this feature. If you don’t have a account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an indvidual account here: