A simple computer glitch at the trading firm Capital Knight Group sent shockwaves through the stock market a few days ago. So far Capital Knight Group haven’t been that forthcoming with regards to information about what exactly happened to the firm’s software, but said in a press release that:
“This morning, a technology issue occurred in Knight’s market-making unit related to the routing of shares of approximately 150 stocks to the NYSE.”
The consequence of the glitch was that computer-based trading algorithms decided to buy vast amounts of shares from dozens of different companies. The result was that some of the stocks soared, while others, including Capital Knight Groups’, lost value at an alarming rate.
According to Reuters, the NYSE said it would cancel stock trades in six different stocks due to the glitch.