Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.
What: Shares of trading house Knight Capital Group
So what: Yesterday was big. Really big. In the matter of just 45 minutes, an out-of-control trading algorithm had led to a gargantuan $440 million trading loss for Knight Capital.
This needs to be put in perspective. After all, it might seem on the small side for those thinking about JPMorgan Chase's
Now what: This dismounted Knight needs a white knight, pronto. On Thursday, the company was frantically looking for a source of financial backing, if not a buyer for the entire company. Fox Business Network also reported that management is considering a bankruptcy filing.
For the markets, there were definitely some jitters introduced by the Knight glitch. For Knight though, 45 minutes may have been just enough to behead the company.
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