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Knight Capital Fined $12M For a Software Bug That Cost $460M

Posted by samzenpus on from the slap-on-the-wrist dept.

Mark Gibbs writes "Knight Capital monumentally fouled up a software update. According to the SEC, 'Knight did not have supervisory procedures to guide its relevant personnel when significant issues developed.' In other words, not only was Knight's code management inadequate but their human management processes were just as bad. The fine for what could have been a biblical financial disaster? A measly $12 million."

1 of 192 comments (clear)

  1. The fine wasn't all of the punishment by Jay+Maynard · · Score: 5, Informative

    That $460 million came out of Knight Capital's pockets too...and is far more effective than any fine the SEC could levy. Why should the SEC pile on, aside from the populist outrage that goes along with people handling billions of dollars?

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