1 August 2012: Knight Capital loses $440 million in 45 minutes
A software glitch at Knight Capital, a major US market maker, sent a flood of unintended orders into the market right after the opening bell. In about 45 minutes the firm lost roughly $440 million, more than it could absorb. Its stock collapsed, it needed an emergency rescue, and it was soon taken over. A few lines of old code nearly destroyed a firm that handled a big share of US trading.
The lesson: Operational risk is real; one small technical failure can wipe out a seemingly solid firm.
Could you have called it at the time? The wheel picks the year, you pick the position, ten seconds a pick.
Play Sixty-40