Case Study 4: The $440 million software error at Knight Capital

Knight Capital Group was an American global financial services firm engaging in market making, electronic execution, and institutional sales and trading. In 2012 Knight was the largest trader in U.S. equities with a market share of around 17 percent on the New York Stock Exchange (NYSE) as well as on the Nasdaq Stock Market. Knight’s Electronic Trading Group (ETG) managed an average daily trading volume of more than 3.3 billion trades, trading over $21 billion … daily.