Tag Archives: Jefferies Group

High Frequency Traders In A Hurry To Get In And Out Of Knight Shares

The Knight Capital convertible preferred documentsare a mess. The basic structure is quite nice: Knight’s new investors are getting a preferred stock that, eliding the details below, pays a 2% dividend, converts into common at $1.50 a share, automatically converts once … Continue reading

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Regulators Can’t Keep Pace with Market Technology

Stripped down to its essence, the root cause of last week’s trading glitch that nearly wiped out Knight Capital Group (NYSE: KCG)  isn’t real complicated. In a nutshell, the problem is that market regulators simply can’t keep up with advances … Continue reading

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Astonishing Chart of the Day, HFT Edition, Courtesy of Nanex

This astonishing GIF comes from Nanex, and shows the amount of high-frequency trading in the stock market from January 2007 to January 2012. (Which means that the Knightmare craziness of last week is not included.) The various colors, as identified in the legend on the … Continue reading

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Knight Blowup Shows How High-Speed Traders Outrace Rules

The U.S. has the most sophisticated financial markets in the world, yet they can unaccountably spin out of control at a moment’s notice. The latest case involves Knight Capital Group Inc. (KCG), a securities-trading company inJersey City, New Jersey, that was laid … Continue reading

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Technological innovation comes with huge risks in financial markets

  Financial markets have greatly improved over the past quarter century. Trading costs, whether for small individual investors or large institutional investors, have declined sharply. The cuts going to middlemen are smaller, and many markets are deeper and more liquid than ever. … Continue reading

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Knight Capital Mess Aside, High Frequency Trading Is Here To Stay

“The apparent trading error by Knight Capital Group…reflects the type of event that can raise concerns for investors about our nation’s equity markets,” said SEC Chairman Mary Schapiro in a statement on Friday. And it is, according to Forbes’s Chris Barth … Continue reading

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Knight Capital Gets $400 Million Rescue, Shares Tumble; Blackstone, Getco, Ameritrade Win

A group of investors rescued Knight Capital Group Inc in a $400 million deal that keeps the embattled leader in U.S. equities market-making in business, but comes at a huge cost to existing shareholders. Chief Executive Tom “TJ” Joyce told … Continue reading

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