Knight Capital’s clients have completely flown the coop after a software error in the company’s trading software caused the company to stomach $440 million in losses, according to three different traders consulted by Business Insider.Wall Street institutions large and small no longer feel comfortable using the market making firm to execute their trades in the wake of the snafu, essentially cutting of its business.
An equities trader explained that Knight was the “last place” he would go to execute a trade. Others expressed befuddlement and the firm’s inability to rectify the trading error for a full 45 minutes.
Wall Streeters’ abandonment of the firm bodes ill for the company’s ability to recoup losses. In May, the company had a daily trading volume of about $21 billion.
Shares of Knight Capital Group fell 63 per cent during trading yesterday, and many predict the firm will go under without outside aid.
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