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Main Forums => The Roundtable => Topic started by: TechMan on August 02, 2012, 02:11:53 PM

Title: Well that has to hurt - Error in new software costs trading company $440 Million
Post by: TechMan 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 (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.
Title: Re: Well that has to hurt - Error in new software costs trading company $440 Million
Post by: RevDisk 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?
Title: Re: Well that has to hurt - Error in new software costs trading company $440 Million
Post by: TechMan 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...
Title: Re: Well that has to hurt - Error in new software costs trading company $440 Million
Post by: HankB 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.
Title: Re: Well that has to hurt - Error in new software costs trading company $440 Million
Post by: Fly320s on August 02, 2012, 03:12:59 PM
In any case, it seems that is wasn't properly tested beforembeing put to use.
Title: Re: Well that has to hurt - Error in new software costs trading company $440 Million
Post by: Tallpine 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  ???
Title: Re: Well that has to hurt - Error in new software costs trading company $440 Million
Post by: vaskidmark 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.
Title: Re: Well that has to hurt - Error in new software costs trading company $440 Million
Post by: Jamie B on August 02, 2012, 07:18:13 PM
Maybe the programming team emailed the code from India......
Title: Re: Well that has to hurt - Error in new software costs trading company $440 Million
Post by: Tallpine 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:
Title: Re: Well that has to hurt - Error in new software costs trading company $440 Million
Post by: TechMan on August 02, 2012, 08:12:03 PM
The code review wasn't completed due to the blackout in India....