A "Knight"-mare on Wall Street

Knight Capital Group (KCG) has been in the news the past two days for a software glitch that has brought the company to its knees in a little more than 24 hours. The software malfunction caused the electronic trading system to rack-up hundreds of millions of dollars worth of losses, approximately half of the company's market cap. Currently, the company is considering bankruptcy options. It is amazing to me that a software glitch can bring down a billion dollar company in 15 minutes of trading. So what are the future ramifications from this event, and how will it affect your finances? The regulatory sharks are sharpening their teeth as we speak (or type), and the news will start to trickle out on how more regulatory measures are needed for financial institutions. The one positive that will come from this horrendous debacle is the fact that people will continue to question the use of machines over people to process orders. This also sheds light on how setting stop-orders and walking away from your computer could really bite you in the ace.