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Author Topic: Well that has to hurt - Error in new software costs trading company $440 Million  (Read 1554 times)

TechMan

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Well that has to hurt - Error in new software costs trading company $440 Million
« on: August 02, 2012, 02:11:53 PM »
http://www.businessweek.com/news/2012-08-02/knight-says-losses-from-trading-breakdown-are-440-million

Knight Capital Group installs new trading software and the software sent "numerous erroneous orders" that cost it $440 Million which is quadruple it 2011 net income.  The errors were caused by a trading algorithm. 



Who wants to bet the programming team doesn't get a bonus this year.
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RevDisk

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Re: Well that has to hurt - Error in new software costs trading company $440 Million
« Reply #1 on: August 02, 2012, 02:14:51 PM »
Quote from: adively on August 02, 2012, 02:11:53 PM
Who wants to bet the programming team doesn't get a bonus this year.

How much you want to bet the programming team quit when they knew what code was being rushed into production?
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TechMan

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Re: Well that has to hurt - Error in new software costs trading company $440 Million
« Reply #2 on: August 02, 2012, 02:53:38 PM »
Quote from: RevDisk on August 02, 2012, 02:14:51 PM
How much you want to bet the programming team quit when they knew what code was being rushed into production?

True...
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Hawkmoon - Never underestimate another person's capacity for stupidity. Any time you think someone can't possibly be that dumb ... they'll prove you wrong.

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HankB

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Re: Well that has to hurt - Error in new software costs trading company $440 Million
« Reply #3 on: August 02, 2012, 03:02:11 PM »
Wouldn't surprise me if some suit ordered deployment of the software in 1 week . . . when there was still 4 weeks of testing left. (All it takes to compress a schedule is an executive edict.)

Or maybe the coding was outsourced to India . . . because they quoted a lower price.
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Fly320s

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Re: Well that has to hurt - Error in new software costs trading company $440 Million
« Reply #4 on: August 02, 2012, 03:12:59 PM »
In any case, it seems that is wasn't properly tested beforembeing put to use.
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Re: Well that has to hurt - Error in new software costs trading company $440 Million
« Reply #5 on: August 02, 2012, 04:17:59 PM »
Quote from: Fly320s on August 02, 2012, 03:12:59 PM
In any case, it seems that is wasn't properly tested before being put to use.

What could possibly go worng  ???
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Re: Well that has to hurt - Error in new software costs trading company $440 Million
« Reply #6 on: August 02, 2012, 05:05:56 PM »
Quote from: Tallpine on August 02, 2012, 04:17:59 PM
What could possibly go worng  ???

You mean since it wasn't their own money they were playing with?

Up until about a year ago that was the way things went.  Then someone figured out how to write a class-action lawsuit. :'(

stay safe.
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Jamie B

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Re: Well that has to hurt - Error in new software costs trading company $440 Million
« Reply #7 on: August 02, 2012, 07:18:13 PM »
Maybe the programming team emailed the code from India......
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Re: Well that has to hurt - Error in new software costs trading company $440 Million
« Reply #8 on: August 02, 2012, 07:42:17 PM »
Quote from: Jamie B on August 02, 2012, 07:18:13 PM
Maybe the programming team emailed the code from India......

Just think how much they saved on development costs  :lol:
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TechMan

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Re: Well that has to hurt - Error in new software costs trading company $440 Million
« Reply #9 on: August 02, 2012, 08:12:03 PM »
The code review wasn't completed due to the blackout in India....
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Hawkmoon - Never underestimate another person's capacity for stupidity. Any time you think someone can't possibly be that dumb ... they'll prove you wrong.

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Bad decisions make good stories.

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