Saturday, August 04, 2012

Trading Program Ran Amok, With No 'Off' Switch - NYTimes.com

A new best practice for developers of automated trading systems: include (and document) an "off switch"...
"On Friday, Knight, which in the last decade grew into a leading broker for American stocks, climbed off the mat, securing emergency financing that allowed it to continue operating for the day. It also enticed some of its customers to resume sending client stock trades, two days after it disclosed a possibly fatal $440 million loss from the software problem. But it faced a desperate weekend of maneuvering to find a more permanent solution for its woes. Knight’s short-term financing was meant to keep it alive until Monday, when its executives and advisers hope to have deals completed to remove any doubt about the firm’s future."
Trading Program Ran Amok, With No 'Off' Switch - NYTimes.com
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