Fact check
Is it true: Knight Capital Group $440M algorithmic trading loss (Aug 1 2012)?
Yes — this is confirmed.
The $440M loss and its technical cause are fully confirmed by SEC investigation, Knight Capital's own post-mortem, and regulatory proceedings. The mechanism — an undeployed server running deactivated 2003-era Power Peg code — is documented in granular detail. Conspiracy claims of deliberate manipulation have no evidentiary basis. SEC fined Knight $12M in 2013; Reg SCI followed in 2014.
The claim
On 1 August 2012, Knight Capital Group lost approximately $440 million in 45 minutes due to an algorithmic trading misconfiguration during the NYSE's Retail Liquidity Program launch. New SMARS routing
Key evidence
SEC confirmed the technical mechanism: incomplete SMARS deployment
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