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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. Re:Maybe I am stupid, please explain. by Anonymous Coward · · Score: 5, Interesting

    Why should the SEC care if Knight Capital wanted to lose a big pile of money.

    Because SEC has the political mission to portray the stock market as a rational, efficient, professional and socially useful apparatus - not the cesspool of mother-fucking sharks that it is. Hence all the trading rules which are selectively enforced so as to maintain the illusion without scarring the sharks away to, say, London.