Knight Capital fined $12 million for 2012 trading glitch that caused $460 million loss
On August 1, 2012, Knight Capital Americas LLC's automated equity router malfunctioned due to a code deployment error, sending over 4 million erroneous orders into the market within 45 minutes. The firm suffered a loss of more than $460 million. The SEC charged Knight Capital with violating the market access rule and Regulation SHO, and the firm agreed to pay a $12 million penalty and retain an independent consultant.
- Date it happened
- 2012-08-01
- Organisation involved
- Knight Capital Americas LLC
- Product, system or model
- Knight Capital's automated equity router
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