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Knight lost half a billion dollars in 30 seconds and not a single trade was reversed. If anything similar happened to any major hedge fund or market maker, noth
by dcolkitt 5y ago
Knight lost half a billion dollars in 30 seconds and not a single trade was reversed. If anything similar happened to any major hedge fund or market maker, nothing would get reversed.
Every hedge fund and market maker knows that if their algorithms break, their money is gone. Period. No backsies. The point is billions in capital is already completely trusted to algorithms with no human fail safe.
- NovemberWhiskey 5y ago>Knight lost half a billion dollars in 30 seconds and not a single trade was reversed. If anything similar happened to any major hedge fund or market maker, nothing would get reversed. I am pretty sure that NYSE canceled trades in six names after Knight; and the LULD pause rules that were introduced after the 2010 flash crash (unfortunately too late to save Knight) also create opportunities for human intervention.