“The Securities and Exchange Commission has deepened its probe into whetherKnight Capital Group Inc. KCG -2.01% did enough to police its trading systems before computer errors nearly destroyed the brokerage.
The inquiry, which began after Knight’s errant Aug. 1 trades saddled it with more than $450 million in losses, initially focused more narrowly on what caused the errors. The probe has broadened to look further at the company’s risk-control procedures and Knight’s compliance with a rule implemented last year—called the market-access rule—that requires brokerages to guard against these sorts of problems, say people familiar with the investigation.”
If you enjoy the content at iBankCoin, please follow us on Twitter
