
How to lose $172,222 a second for 45 minutes - colinramsay
http://pythonsweetness.tumblr.com/post/64740079543/how-to-lose-172222-a-second-for-45-minutes
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ajbonkoski
Page 4 summarizes all that really needs to be said here:
[http://www.sec.gov/litigation/admin/2013/34-70694.pdf](http://www.sec.gov/litigation/admin/2013/34-70694.pdf)

Knight didn't have a proper risk system. A correct risk system is a dead-man
switch. There is just no way to place this many erroneous orders and get them
filled. Capital Limits Exceeded: Full Shutdown. Risk System Crashes: Full
shutdown. Heartbeat fails: Full shutdown.

Better to have a paranoid risk system than a rouge strategy.

The real flaw wasn't legacy code, it was straight-up laziness. This really
isn't rocket-science.

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brudgers
Date: 2013

Big discussion:
[https://news.ycombinator.com/item?id=6589508](https://news.ycombinator.com/item?id=6589508)

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jjp
Summary of Knight Frank high speed trading mishaps.

