{"id":3293,"date":"2012-08-21T14:18:09","date_gmt":"2012-08-21T18:18:09","guid":{"rendered":"http:\/\/calleam.com\/WTPF\/?p=3293"},"modified":"2026-04-24T09:43:38","modified_gmt":"2026-04-24T16:43:38","slug":"knight-capital","status":"publish","type":"post","link":"https:\/\/calleam.com\/WTPF\/?p=3293","title":{"rendered":"Knight Capital"},"content":{"rendered":"

Following entry is a record in the \u201cCatalogue of Catastrophe<\/a>\u201d –\u00a0a list of failed and troubled projects from around the world.<\/p>\n

\n

Knight Capital <\/strong>– USA
\nProject type : <\/strong>Share trading system
\nProject name : <\/strong>Unknown
\nDate :<\/strong> Aug 2012 Cost :<\/strong>$440 USD<\/p>\n

Synopsis :<\/strong><\/p>\n

\"\"<\/a>
Trading floor – Creative Commons Attribution-Share Alike 4.0 International – Source: S. Beale<\/figcaption><\/figure>\n

In a story that reminds us of the need for proper testing standards, a software “glitch” at Knight Capital resulted in a $400M lose in just 30 minutes! According to press reports the lose amounted to 3 times Knight’s annual earnings. \u00a0Although details are hard to come reports imply the problem was caused by a rush to meet a deadline to implement changes to accommodate a “Retail Liquidity Program” (RLP) approved by the Securities and Exchange Commission (SEC) in mid-June 2012. \u00a0According to reporting the RLP program was intended\u00a0 to offer investors the best possible price, even if it meant diverting trades from the New York Stock Exchange and onto alternate “dark markets”. \u00a0The implementation deadline for RLP was set for 1 Aug and the trading “glitch” at Knight occurred during the first 30 minutes of trading on Aug 1st.<\/p>\n

Contributing factors as reported in the press:<\/strong>
\nThought to be a quality control (software testing) failure. \u00a0Issue potentially caused by a rush to meet the RLP implementation date (i.e. schedule pressure failure<\/a>)<\/p>\n

Reference links :<\/strong><\/p>\n

    \n
  1. Software Testing Lessons Learned From Knight Capital Fiasco<\/a><\/li>\n
  2. High-frequency trading and the $440m mistake<\/a><\/li>\n<\/ol>\n","protected":false},"excerpt":{"rendered":"

    Following entry is a record in the \u201cCatalogue of Catastrophe\u201d –\u00a0a list of failed and troubled projects from around the world. Knight Capital – USA Project type : Share trading system Project name : Unknown Date : Aug 2012 Cost :$440 USD Synopsis : In a story that reminds us of the need for proper […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5,3,77],"tags":[97,100,129,93,147],"class_list":["post-3293","post","type-post","status-publish","format-standard","hentry","category-private-sector","category-failed-project","category-why-projects-fail","tag-examples-of-failed-it-project","tag-examples-of-failed-projects","tag-failed-project","tag-why-do-projects-fail","tag-why-projects-fail"],"_links":{"self":[{"href":"https:\/\/calleam.com\/WTPF\/index.php?rest_route=\/wp\/v2\/posts\/3293","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/calleam.com\/WTPF\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/calleam.com\/WTPF\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/calleam.com\/WTPF\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/calleam.com\/WTPF\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=3293"}],"version-history":[{"count":17,"href":"https:\/\/calleam.com\/WTPF\/index.php?rest_route=\/wp\/v2\/posts\/3293\/revisions"}],"predecessor-version":[{"id":10151,"href":"https:\/\/calleam.com\/WTPF\/index.php?rest_route=\/wp\/v2\/posts\/3293\/revisions\/10151"}],"wp:attachment":[{"href":"https:\/\/calleam.com\/WTPF\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=3293"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/calleam.com\/WTPF\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=3293"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/calleam.com\/WTPF\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=3293"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}