KCG down due to rumor of algo gone wild

Quote from Daal:

Problem is the legal liabilities that company might face, the buyer might want to buy their stuff in bankruptcy instead of the whole thing
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Yeah, but then you're open to competitive bidding.
 
Quote from DeltaSpread:

Here is a good example of why it pays to really dig in and seek out most current financial statement filings in a most timely matter. Yesterday was quite busy and took a quick glance at KCG @ Yahoo Finance.

According to the stats, $7.5B in cash with a little over $5B in debt. I figured they would easily be able to cover the mishap/loss with that much excess cash. However now I realized yahoo finance is stating enterprise value is nearly <-$2B> So something is not right with that data.
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I made the same EXACT mistake. Thought their liquidity was fine, until I looked at the financials. Overall I find Yahoo data quite unreliable sometimes
 
Quote from Daal:

I made the same EXACT mistake. Thought their liquidity was fine, until I looked at the financials. Overall I find Yahoo data quite unreliable sometimes
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At least I was not the only one.

Very interesting options action right now as stock price flirts with new lows. Aug $2.50 puts spiking to a new high with a tight spread. .45/.50 Torn between selling or buying right now. Will let it play out a bit more.
 
Quote from Chicago_CTA:

What do you guys think, P.E. firm to the rescue?
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I would wait till the end of the day, dangerous scalps here imho.
You know if someone picks them up they will want to do it on the cheap.
It seems Citadel is the front runner.
 
Quote from Chicago_CTA:

Float's about $400mm.

If I was an uber-rich Arab I would be all over this....


Knight trades about 750 million shares a day; NYSE does about 1 billion per day; NASDAQ about 1.2 billion per day.

That's huge. Just got into futures, as well, with the purchase of PNSN's exchange memberships + clients.

I'll be cheering for Knight to make a comeback.
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-read this-


If those proportions of Knight trading volumes to other exchanges' trading volumes is correct, watch out for more cries from the public that the "game is rigged" when Knight has to be saved due to it's large market presence.

The public would be right - saving these firms using faulty algorithms IS exactly the wrong thing to do. Don't allow busts and the algorithms will be fixed pronto.

Also, some of these cascades have been due to the use of market orders which firms are not afraid to use because the exchanges keep BAILING THEM OUT WITH BUSTS.

Other markets (bigger and better than ours in some respect!!), don't allow these free busts, and have benefited from it! I checked into the Korean Kospi options months ago and they were the heaviest traded options in the world. In the Kospi options, you know your trades cannot be reversed by the politically connected!
ALL TRADES STAND. Their markets are reliable.
 
@Wilbur - there's an enormous difference between the TAXPAYER saving a private company, and private investors taking an equity share. In fact, it's completely different.

And I agree with you that the bailouts of 2008 were morally and financially ruinous.
 
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