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Dark Knight Capital... Again

Submitted by Tyler Durden on 10/31/2012 12:04 -0400

Wondering why something appears very off in the market? Blame Knight Capital ... Again. Is second time the charm to finally take out the competition? KCG stock crashing.

Self-help?

Dear Clients:

Due to a building emergency (power issues), Knight Capital Americas is asking you to seek an alternate destination for the order handling and execution of your OTC, Options and Listed orders until further notice.

All computer interfaces with Knight will be shutdown with no new orders, both by phone or electronic, being accepted at this time.

Please continue to e-mail Help@Knight.com with any questions.

Thanks

Tonya Walker, Managing Director

The brokers are already on it:

Dear Valued Client,

As per Knight’s request below, please route away from Knight. If a client routes an order to Knight, the order will be rejected by our system. Information on existing orders will still flow back from Knight.

If you have any questions or concerns, please feel free to contact us.

Regards,

InstaQuote |Bank of America Merrill Lynch

- advertisements -

Wed, 10/31/2012 - 12:06 | 2934715 Mr Lennon Hendrix

I had thought they already folded.

lol

Wed, 10/31/2012 - 12:13 | 2934757 HedgeAccordingly

REJECTED ... they say!

Wed, 10/31/2012 - 12:15 | 2934762 knukles

More like Marvel Comics every day

Wed, 10/31/2012 - 12:37 | 2934848 malikai

WTF? They don't have gennies?

Or, someone forgot to test the plan.

Wed, 10/31/2012 - 13:48 | 2934874 Manthong

“More like Marvel Comics every day”

A new super-villain has emerged to wreak havoc on financial markets and economies..

Toxic chemical and radioactive waste in the sediment of the Hudson River stirred up by the surges of Sandy have mutated a single indigenous fish who was feeding on the remains of a Wall Street wise guy in cement overshoes at the bottom and spontaneously mutated into a half fish, half vicious criminal with super human powers now hell bent on attacking the computer and data communication assets of Wall Street.

The Wall Street wise guy was a quant working for the Fed who was silenced because he was about to blow the whistle on the huge house trading operation and now, reincarnated as a supervillian, he has a score to settle.

Enter .. The Naked Goby

http://www.dec.ny.gov/lands/74069.html

Wed, 10/31/2012 - 13:53 | 2935109 Stoploss

Hell yeah they got gennies, they're under 5 - 10 feet of water..

Working as designed.

Wed, 10/31/2012 - 12:31 | 2934828 unrulian

The Joker, "You know where I can find kevin Henry? I need to talk to him about something... Just something"

Wed, 10/31/2012 - 12:24 | 2934800 CcalSD

LIGHTS OUT!!

Wed, 10/31/2012 - 12:36 | 2934844 TideFighter

oppa, oppa, trading Gangnam Style, Gangnam Style.

Wed, 10/31/2012 - 12:46 | 2934897 LongSoupLine

Knight - just finding different ways to be "under water".

Wed, 10/31/2012 - 14:39 | 2935253 Rathmullan

Yes, I felt something was amiss this morning. I always feel that way when all 3 indices trade down.

Wed, 10/31/2012 - 12:06 | 2934717 NotApplicable

Ooops, they did it again.

Wed, 10/31/2012 - 12:15 | 2934764 BeaverFever

WTF? Is Britney Spears prego again? Is this the HuffPo?

Wed, 10/31/2012 - 12:22 | 2934794 Unprepared

No, Nicki Minaj and Mariah Carrey are BFF again,

Wed, 10/31/2012 - 12:37 | 2934849 CPL

OMG rily?

Wed, 10/31/2012 - 12:59 | 2934942 NotApplicable

Yah, rly.

Wed, 10/31/2012 - 12:50 | 2934910 malikai

Alright, which one of you guys were slumming it again?

Fess up.

Wed, 10/31/2012 - 13:00 | 2934945 NotApplicable

With an alias like yours, you'd better hope so. ;)

Wed, 10/31/2012 - 12:07 | 2934721 The Wizard of Oz

TURN THOSE MACHINES BACK ON!!!

Wed, 10/31/2012 - 12:08 | 2934729 WhiteHose

Get those brokers back in here!!!

Wed, 10/31/2012 - 12:10 | 2934740 Mr Lennon Hendrix

Brokers:

Funny name for people who are hired to make money.

Wed, 10/31/2012 - 12:25 | 2934801 ThirdWorldDude

Don't get confused - they're hired to make you go broke!

Wed, 10/31/2012 - 12:27 | 2934818 redpill

'The leads are weak!'

'The leads are weak? Fuck you, YOU'RE WEAK!'

/GGGR

Wed, 10/31/2012 - 12:38 | 2934850 malikai

'You see this watch?'

Wed, 10/31/2012 - 12:44 | 2934885 Jay Gould Esq.

Who would downtick Shelley Levene ?

Must have been that greasy chap with the Rolex -- Blake, from Mitch & Murray.

Wed, 10/31/2012 - 12:20 | 2934786 Unprepared

"Sir, our software has not been tested for this level of liquidity" Technical Support.

Wed, 10/31/2012 - 12:26 | 2934806 Matt

Maybe when they restored backups after the power outage, the backup image had the test software on it again. Oops.

Wed, 10/31/2012 - 12:38 | 2934851 Al Huxley

I hadn't thought of that, but yeah, entirely possible.

Wed, 10/31/2012 - 12:18 | 2934777 Quinvarius

I think turning them back on after last time is the problem.

Wed, 10/31/2012 - 12:07 | 2934726 Dr. Engali

This "market" will be lucky to make it through year's end.

Wed, 10/31/2012 - 12:12 | 2934753 Water Is Wet

Yahoo Finance is running a poll right now. "What will the long-term impact of Hurricane Sandy be on the American economy?" Only 17% of people think the impact will be negative. Talk about complacency.

Wed, 10/31/2012 - 12:16 | 2934767 Bay of Pigs

It's denial.

Wed, 10/31/2012 - 12:20 | 2934785 Mr Lennon Hendrix

Break moar windows!

Wed, 10/31/2012 - 12:41 | 2934862 ParkAveFlasher

That youtube of 14th street Con Ed going Tesla? that was Krugman's nuts exploding.

Seriously, my neighbor is a foreman with Con Ed. Was in the control center when the transformers blew. He said no one was hurt (no one is allowed close to those coils or whatever they are). Anyway they all knew it was a matter of time because the water rose up to the level of the same switches that should have shut it down ie all safety gear got submerged and rendered inoperative. The 14th street transformers blew in succession, cascading in a chain reaction that then took out all substations from battery (already shut down) up to the 30s, hence the blackout below 40th.

Wed, 10/31/2012 - 12:42 | 2934869 ParkAveFlasher

And BTW, how about that Jwsh Lightening that struck Breezy Pt? Anyone who knows the environs, and the crowd that has been insinuating itself there knows what I am talking about.

Wed, 10/31/2012 - 13:44 | 2935070 entropy93

They knew what to expect within a foot, I was watching the storm surge go up and up. Plenty of warning, why didn't someone shut it down before the damage happened? Its now a much bigger repair job. If it had been shutdown it would have been a dewatering issue with limited equipment damage. Now they've got massive equipment damage.

No one had the guts or the smarts to shut the system down despite knowing it would self destruct before high tide.

Wed, 10/31/2012 - 12:50 | 2934912 Spitzer

krugman kensianism at its worst

Wed, 10/31/2012 - 13:27 | 2935023 oddball

The river in Egypt?

Wed, 10/31/2012 - 12:27 | 2934810 Dr. Engali

Krugmanites and their broken windows.

Wed, 10/31/2012 - 13:04 | 2934933 notbot

That yahoo poll just shows you how pervasive the Keynesian Broken Window fallacy has become.

And why we are doomed.

How can we trust these people to elect leadership?

Wed, 10/31/2012 - 12:09 | 2934731 Facemelt

What a clown show.

Wed, 10/31/2012 - 12:17 | 2934772 Unprepared

I get from not using an exclamation mark that you are not particularly impressed.

Wed, 10/31/2012 - 12:10 | 2934738 Cdad

Good lord...when are these ridiculous "computer liquidity firms" simply going to be shuttered? Seriously...when is the criminal syndicate known as Wall Street going to rediscover that without integrity, their markets are simply gone?

Wed, 10/31/2012 - 12:13 | 2934755 Cognitive Dissonance

When they have all been reduced to smoking heaps via spontaneous combustion......and not a moment sooner brother Cdad.

Wed, 10/31/2012 - 12:18 | 2934776 Cdad

Agreed, brother Cog...the buildings are in flames, and the idiots inside them are on the phones, trying to buy upside Netflix calls...from guys in other buildings that are up in flames. It has been ridiculous for all these crash intervening years...and is no less ridiculous today.

Good grief [and by that I mean...just pink slip ALL bankers already so that we can attempt to simply restart the whole damn industry]

Wed, 10/31/2012 - 13:14 | 2934986 Panafrican Funk...

"just pink slip ALL bankers already so that we can attempt to simply restart the whole damn industry"

If Mordor is destroyed, why would anyone want to rebuild it?

Wed, 10/31/2012 - 13:25 | 2934795 Fredo Corleone

When ?

When their "enablers" ( i.e., "clients" ), once and for all, terminate their business relationships with "Knighty-night." Indeed, one would think, with respect to Knight's seaworthiness, clients would by now realize, "What's past is prologue."

As an aside, Fidelity routes through Knight Capital -- the Great White Whale of "enablers."

Wed, 10/31/2012 - 12:11 | 2934743 Water Is Wet

The system is down.

Wed, 10/31/2012 - 12:45 | 2934888 fuu

Strongbad?

Wed, 10/31/2012 - 12:11 | 2934745 Cognitive Dissonance

Computer error.

Idiots in.....idiots out.

Wed, 10/31/2012 - 12:41 | 2934865 krispkritter

I/O, I/O, they're out of orders you know...

_{(think dwarves)}

Wed, 10/31/2012 - 13:16 | 2934987 Cognitive Dissonance

Nice!

That's what I call the Gold and Silver mining stocks.....dwarves. The minor miners (GDXJ for example) are <of course> mini dwarves. :)

Wed, 10/31/2012 - 12:11 | 2934749 slaughterer

Crazy trades everywhere,everywhere! Knight will have to sell these to GS again for clearing.

Wed, 10/31/2012 - 12:14 | 2934754 virgilcaine

TD I was reading a trading alert and mkt service.. he was just copying and pasting text from ZH! and then forwarding it. lol Some characters out their in newsletter land.

Wed, 10/31/2012 - 12:19 | 2934780 Mr Lennon Hendrix

Send him this link:

http://www.zerohedge.com/donate

Wed, 10/31/2012 - 12:14 | 2934761 Inthemix96

Knight riding cluster fuck.

Time to call the Hoff......

Wed, 10/31/2012 - 12:17 | 2934769 Jason T

OT .. google: looting

getting ugly out there in NYC

Wed, 10/31/2012 - 12:44 | 2934878 PLira

but. but. but.

Doesn't Das Fuhrer Bloomberg have his Army at the ready?

Wed, 10/31/2012 - 12:17 | 2934770 Spitzer

Remember that guys like Gerald Celete and Bill Flekenstine got fucked in the MF Global deal ?

Funny how these guys don't practice what they preach..

I wonder how many of these guys are getting fucked by Knight Cap

Wed, 10/31/2012 - 12:27 | 2934811 john39

apples to oranges. besides, celente was trying to buy physical gold... the criminals have rigged the system so thoroughly that you must go through the system to get anything, even physical gold... and in so doing, you are very vulnerable.

Wed, 10/31/2012 - 12:17 | 2934773 buzzsaw99

Dave: Open the pod bay doors, HAL.

HAL: I'm sorry, Dave. I'm afraid I can't do that.

Dave: What's the problem?

HAL: I think you know what the problem is just as well as I do.

Dave: What are you talking about, HAL?

HAL: This mission is too important for me to allow you to jeopardize it.

Wed, 10/31/2012 - 12:26 | 2934803 youngman

They are going looting for lunch.......

Wed, 10/31/2012 - 12:27 | 2934812 Neethgie

Oh well knight, we gotta keep on trying for those algos that are still alive...

Wed, 10/31/2012 - 12:27 | 2934814 Central Wanker

These guys really rock!

Computers switched on => Disaster

Computes switched off => Disaster

Wed, 10/31/2012 - 12:29 | 2934823 Cursive

KCG lasted much longer than I thought it would.

Wed, 10/31/2012 - 12:32 | 2934831 Dr. Engali

Precious metals trading opposite of equities... I wonder if this is the start of something.

Wed, 10/31/2012 - 12:40 | 2934858 Monedas

Hard to manipulate the markets when the computers are soaked in salt water ?

Wed, 10/31/2012 - 12:35 | 2934843 Inthemix96

A teacher is talking to her class of kids and asks "What does you're father do for a living? You, little john, you go first"

Little John stands up and says "Miss, my dad works for a whore house. He says he fists women all day while popping pills and smoking crack".

The teacher is understandably alarmed and phones the father up straight away. "Now listen sir, you're little boy John has told me exactly what you get upto in your job, and fisting women is a despicable act"..............

"now listen", said Johns dad, "I have to lie to him, he is just a kid. How the hell can I tell him his dad is an investment banker?"

:-)

Wed, 10/31/2012 - 12:43 | 2934863 Yen Cross

O/T Did you catch this one yet Tyler? Last months ADP report revised down to 88.2K from 162K

Here is the ADP link. Ref; http://www.adpemploymentreport.com/

Wed, 10/31/2012 - 13:08 | 2934969 Bastiat

No need to dwell on the past. Forward!

/sarc

Wed, 10/31/2012 - 12:43 | 2934871 Bastiat

Warning! Biohazard!

Biden: 'I'm Going to Give You the Whole Load Today'

www.weeklystandard.com/blogs/biden-im-going-give-you-whole-load-today_659899.html

Wed, 10/31/2012 - 13:29 | 2935032 knukles

And the Democrats were worried about Palin....

Wed, 10/31/2012 - 12:46 | 2934896 Lost Wages

As long as the Fed can get in for the 3PM ramp, everything will be fine.

Wed, 10/31/2012 - 12:50 | 2934914 popanonymous

I thought it was due to power, "Due to a power issue on our site we will be shutting down and will let you know when it is up."

Wed, 10/31/2012 - 12:51 | 2934916 resurger

lol

Wed, 10/31/2012 - 13:01 | 2934947 earnyermoney

All computer interfaces are down...

I'll bet all messages to Help@knight.com are routed to /dev/null

Wed, 10/31/2012 - 13:17 | 2934992 freedogger

Seems like all the B-team IT staff is manning the fort today:

ADP Prematurely Posts Major Downward Revisions To September Jobs Numbers:

http://www.adpemploymentreport.com/docs/ADP_NER_Report_Details.pdf

Wed, 10/31/2012 - 13:35 | 2935047 orangegeek

More clusterfuck. This is no bull market. I recall lots of systems crashes just before the collapse in 2000.

Or maybe I'm wrong, there is no debt, no understated unemployment, no depression....and Bernanke is actually a fembot.

Wed, 10/31/2012 - 13:37 | 2935051 The Paucity of Hope

Is there a possibility that their software didn't malfunction, but got owned by someone with faster access? They're running out of retail investors to feed off of. Since they operate over small changes, could a program manipulate the price point to cause another program to buy then sell repeatedly. It may not have been directed at them, they may have been the system that responded first. The feeding frenzy where they start eating each other.

Wed, 10/31/2012 - 13:37 | 2935053 Fix It Again Timmy

Someone's job has prematurely ended...

Wed, 10/31/2012 - 13:38 | 2935058 yogibear

Make them a bank overnight and then shower them with unlimited money just like they did with Goldman. Nobody that's big and has connections fails according to Bernanke and the Fed.

Dark Knight Capital... Again

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