News

Law

Asset Management

Investment Banking

Wealth

Hedge Funds

People

Newsletters

Events

Lists

Knight reveals $440m trading loss as fallout broadens

The blow to Knight's finances and the slide in its share price prompted some counterparties to stop trading with the firm

Knight Capital said electronic trading glitches in its system that caused price swings in dozens of stocks this week are likely to cost the brokerage firm $440m.

The trading firm's stock plummeted 51% in early trading today, to $3.37, as the Jersey City, N.J., company said it is pursuing ways to "strengthen its capital base," such as securing outside financing or other potential deals.

WSJ Logo