Silver Update: The Dark Knight

August 2, 2012 By 3 Comments

BrotherJohnF discusses the algo flash crash of Knight Capital in his latest Silver Update::
The Dark Knight


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Comments

  1. Avatar of GBS GBS says:
    August 3, 2012 at 2:45 AM

    The story of the day:-

    Rand Paul tries to get a journalist, who asked an awkward question, stripped of her press credentials and fired.
    Rand Paul = Scum Bag.
  2. Avatar of AGXIIK AGXIIK says:
    August 3, 2012 at 9:37 AM

    I think we will find Knight used customer segregated accounts for trading.  Word early today is that Knight will have a forced sale through bankruptcy. The  Penson purchase did not help the situation.  We may even seen a false flag run on Knight through some sort of mole or deviant computer program like  Flame or Stuxnet uses in Iranian computers.  The HFT losses suffered by Knight are very extraordinary and nearly unprecedented.  Test runs should have worked out the bugs before this program was launched.

      If JPM is brought into help with a liquidity tranche  to Knight that will not go well with the customers either.  In any case, the client funds are probably going to be locked down for a signfificant period like MFG and Peregrine if trends of customer protection hold true.

  3. Avatar of Oldfordtrk1 Oldfordtrk1 says:
    August 4, 2012 at 6:58 AM

    AGX, you may be right.  This may be a case of the big fish needing to feed off the little fish just for suvivial now.  The muppets are decreasing in numbers upon which they used to feed upon.

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