HFT firms ‘learned a lot’ from Knight Capital loss
"If things go wrong, they can go wrong very quickly and in a big way," says Tower Research Capital chief risk officer, Marc Vesecky
High-frequency traders "learned a lot" from the devastating $461 million trading loss suffered by Knight Capital in August 2012, according to Marc Vesecky, chief risk officer (CRO) of Tower Research Capital, a high-frequency trading (HFT) specialist.
Speaking during a panel session at the Risk USA conference in New York on October 21, Vesecky listed a battery of controls in use at Tower and said
Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.
To access these options, along with all other subscription benefits, please contact info@risk.net or view our subscription options here: http://subscriptions.risk.net/subscribe
You are currently unable to print this content. Please contact info@risk.net to find out more.
You are currently unable to copy this content. Please contact info@risk.net to find out more.
Copyright Infopro Digital Limited. All rights reserved.
As outlined in our terms and conditions, https://www.infopro-digital.com/terms-and-conditions/subscriptions/ (point 2.4), printing is limited to a single copy.
If you would like to purchase additional rights please email info@risk.net
Copyright Infopro Digital Limited. All rights reserved.
You may share this content using our article tools. As outlined in our terms and conditions, https://www.infopro-digital.com/terms-and-conditions/subscriptions/ (clause 2.4), an Authorised User may only make one copy of the materials for their own personal use. You must also comply with the restrictions in clause 2.5.
If you would like to purchase additional rights please email info@risk.net
More on Risk management
Banks upgrade liquidity tests to cope with volatile world
Risk Live: Greater need to assess modern threats from technology transformation
Enterprise Risk Benchmarking 2026: explore the data
View interactive charts from Risk.net’s 52-bank study, covering enterprise risk governance, appetite setting, board reporting, scenario analysis, culture and resilience
Continuous verification holds key to keeping AI on track
Decision-by-decision testing will help users trust AI judgement calls
Banks try to prepare for – not predict – geopolitical shocks
Risk Live: HSBC and KeyBank frameworks were tested by Iran attacks
Pioneers split over future of UK’s digitalised market
Tokenisation provider urges industry to stop waiting for magic to make digitally issued securities possible
Forward volatility: a model-free framework for hedging options risk
A model-free approach to extracting, hedging and managing forward volatility risk
What happens when AI gets good at your risk management job?
Risk executive Alex Golbin asks how to build a valuable career in risk as agentic AI takes on more analysis
ERM’s influence is growing as its ranks are shrinking
Risk Benchmarking: Mandates expanding to include new threats like AI and geopolitical risk, but majority report flat to down headcount
