Knight Capital Group

Knight Capital Group was a financial services firm that specialized in electronic trading. Founded in 1995, it became known for its innovative technology in executing stock trades. However, in August 2012, the company experienced a major trading malfunction due to a software glitch, leading to erroneous trades and significant financial losses of around $440 million in just 45 minutes. This incident severely impacted the firm’s operations and reputation, ultimately leading to its acquisition by a competitor. Knight Capital's experience highlights the risks and complexities of high-frequency trading and the reliance on technology in modern finance.