MutualFundWire.com
The insiders' edge for 40 Act industry executives!
an InvestmentWires' Publication
an InvestmentWires' Publication
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MutualFundWire.com
The insiders' edge for 40 Act industry executives!
an InvestmentWires' Publication |
|
Friday, August 3, 2012 Knight's Clients Reroute Orders After $440MM Loss After losing $440 million due to a software bug, Knight Capital Group has another problem: firms have stopped routing customer orders through them. Bloomberg and Reuters both reported that customers have begun sending orders through other market makers. The Reuters report says that Fidelity has begun moving orders to other market makers. The Boston-based firm had 18.3 million brokerage accounts during the first quarter and daily commissionable trades reached an average of 400,000 for the first three months of 2012. Bloomberg reports that Citigroup and Vanguard have started rerouting orders as well. Robert Rutschow, CLSA analyst, underscored the challenges Knight faces. “We believe Knight Capital is at risk of bankruptcy following the loss and so we are lowering our rating to sell," the analyst said. "The company’s best option at this point is a sale.” Printed from: MFWire.com/story.asp?s=40831 Copyright 2012, InvestmentWires, Inc. All Rights Reserved |