Knight Capital Americas LLC had agreed to settle charges filed by the US Securities and Exchange Commission. The company had agreed to pay USD12 million to settle an August 2012 erroneous trading which violated rules designed to limit risk, said a Bloomberg report.
The US Securities and Exchange Commission said in a statement today that, "The U.S. Securities and Exchange Commission found that Knight Capital did not have adequate safeguards in place to limit the risks posed by its access to the markets, and failed as a result to prevent the entry of millions of erroneous orders. Knight Capital also failed to conduct adequate reviews of the effectiveness of its controls."
Knight Capital had incurred trading errors made last August 1, 2012. This had caused more than USD460 million in losses in the New Jersey based company. The losses had also drove Knight Capital to the brink of bankruptcy, said a Bloomberg report. On the other hand, Getco LLC had eventually agreed to merge with Knight Capital that resulted to establishing KCG Holdings Inc.
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