News Summary: Knight Capital posts big 3Q loss
By: The Associated Press
THE QUARTER: Knight Capital Group said it lost $764.3 million in the third quarter because of a software glitch that flooded the market with trades, causing dozens of stocks to fluctuate wildly.
THE ERROR: Early on Aug. 1, dozens of stocks started rising and falling sharply for no apparent reason. After Knight acknowledged that a technical glitch in its software had caused the disruption, its stock lost three-fourths of its value in two days.
THE SPIN: The technology fiasco accounted for a financial loss of $2.46 per share, plus 76 cents per share for the related impairment charge. Excluding those and other one-time items, Knight said it earned a penny per share.
THE QUARTER: Knight Capital Group said it lost $764.3 million in the third quarter because of a software glitch that flooded the market with trades, causing dozens of stocks to fluctuate wildly. THE ERROR: Early on Aug. 1, dozens of stocks started rising and falling sharply for no apparent reason.