Trading operations at Knight Capital Group are running again after the firm was forced to stop accepting orders yesterday amid a power outage at its Jersey City headquarters.
The market maker, which had been running on backup generators since Sandy landed on Monday evening, is said to have lost power around 11:45 a.m. yesterday. According to a memo obtained by The Times, the firm told clients that “all computer interfaces with Knight will be shutdown with no new orders, both by phone or electronic, being accepted at this time.”
It’s been a hard year for Knight. The firm was one of the market makers to lose millions to technical difficulties at Nasdaq during Facebook’s initial public offering, then required rescue from outside investors after losing $440 million due to a technical glitch in its own trading program.
Citadel Group and Goldman Sachs were among the firms to take increased trading volumes during Knight’s outage, according to Bloomberg.
Other new from around Wall Street:
Morgan Stanley’s office building at 1 New York Plaza, and AIG’s headquarters at 180 Maiden Lane, will be closed for weeks as building managers deal with flooding after the storm, according to Bloomberg.
Activist investor Carl Icahn disclosed a 10 percent stake in Netflix in a filing with the Securities and Exchange Commission yesterday. “The reporting persons believe Netflix may hold significant strategic value for a variety of significantly larger companies that are engaging in more direct competition with one another due to the evolution of the Internet, mobile, and traditional industry,” Mr. Icahn said in the filing, according to The Times.
A British man charged with involvement in an insider trading scheme that stretched from New York to Central Asia told an informant he got privileged information from a former director of the New York Stock Exchange, reports Bloomberg.
The Federal Energy Regulatory Commission said it was seeking $435 million in civil penalties from Barclays for alleged energy market manipulation in the Western U.S. between 2006 and 2008. Barclays, which agreed to a $450 million settlement this summer over Libor-rigging charges, is also facing a Justice Department anti-corruption investigation over the firm’s efforts to raise money in the Middle East in the early days of the financial crisis, The Journal reports.
JPMorgan is suing Javier Martin-Artajo, the trading manager who supervised the gamble on credit derivatives that led to the bank’s $6 billion London Whale loss, in London Court.