Knight Capital has “all hands on deck” and is in close contact with clients and counterparties as it tries to weather trading errors that cost it $440 million, Chief Executive Officer Thomas Joyce said. Joyce said it’s “hard to comment” on discussions with creditors as Knight stock extended a two-day plunge to 70 percent and the firm explored strategic and financial alternatives following a loss almost four times its annual profit. The problems were triggered by what Joyce called “a bug, but a large bug” in software as the company, one of the largest U.S. market makers, prepared to trade with a New York Stock Exchange program catering to individual investors. “Technology breaks,” Joyce said in an interview on Bloomberg Television’s “Market Makers” program with Erik Schatzker and Stephanie Ruhle today. “It ain’t good. We don’t look forward to it.” [Bloomberg]

71 comments (hidden to protect delicate sensibilities)
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Comments (71)

  1. Posted by Guest | August 2, 2012 at 12:57 PM

    Please define this word "profit".

    -UBS Board of Directors

  2. Posted by Guest | August 2, 2012 at 1:01 PM

    Misery loves company

    -UBS

  3. Posted by 2_Small_2_Bail | August 2, 2012 at 1:01 PM

    Drops 2 of the more cliched synonyms for "We're so fucked" with "All hands on deck" and "Hard to comment" and then comes in with a fresh, rural "It ain't good". Nice.

  4. Posted by Just a Flesh Wound | August 2, 2012 at 1:07 PM

    Knight needs to merge with Metro North to survive.

  5. Posted by Ever the optimist | August 2, 2012 at 1:08 PM

    Oh well, it's summer time and there's usually a good renaissance fair going on somewhere.

  6. Posted by anon | August 2, 2012 at 1:10 PM

    Throwing VaR and somebody else under the bus would've made this much more easier on you.

    –Jamie D.

  7. Posted by SellingLow | August 2, 2012 at 1:13 PM

    "a bug, but a large bug."

    I'M ON IT!

    -The Orkin Man

  8. Posted by D. Fuld | August 2, 2012 at 1:14 PM

    I'd just deny it ever happened.

  9. Posted by Guest | August 2, 2012 at 1:14 PM

    I love the irony in that he was on Market Makers.

  10. Posted by Walter | August 2, 2012 at 1:15 PM

    Ah, fuck it dude, let's go bowling.

  11. Posted by Guest | August 2, 2012 at 1:15 PM

    I think KCG makes that market too. $ROL

  12. Posted by bad music fan | August 2, 2012 at 1:15 PM

    I'm in the business of misery. Let's take it from the top.

  13. Posted by guest | August 2, 2012 at 1:17 PM

    I…what?

  14. Posted by Roughneck | August 2, 2012 at 1:24 PM

    They have to find and kill the brain bug. It's the only way to know for sure.

  15. Posted by just wondering | August 2, 2012 at 1:25 PM

    Did you eat a lot of twinkies as a kid?

  16. Posted by J. Rico | August 2, 2012 at 1:27 PM

    Mixing your movies, dude.

    Starship Troopers and Aliens Quant.

  17. Posted by Nick Leeson | August 2, 2012 at 1:34 PM

    Put it in the error account, it'll come back.

  18. Posted by Zombcap | August 2, 2012 at 1:35 PM

    Brain bug? Sounds delicious!

  19. Posted by Mr. Knight | August 2, 2012 at 1:37 PM

    We need some new capital, and we swear we are not going to lose it all this time ok. seriously

  20. Posted by guest | August 2, 2012 at 1:39 PM

    Next stop, Knights of the Round Table selling their table to post collateral.

  21. Posted by Fatandhappy | August 2, 2012 at 1:40 PM

    Bad day?

  22. Posted by Guest | August 2, 2012 at 1:40 PM

    How big?

    - Billy the Exterminator

  23. Posted by Nick Leeson | August 2, 2012 at 1:44 PM

    I'd just work out of it.

  24. Posted by Call Me Maybe | August 2, 2012 at 1:45 PM
  25. Posted by Guest | August 2, 2012 at 1:47 PM

    EH! Make a market…….fake a market its all good. Bernie Madeoffwithit

  26. Posted by guest | August 2, 2012 at 1:50 PM

    Wives

    -Things that ain't good

  27. Posted by guest | August 2, 2012 at 1:54 PM

    UBS Capital CEO: " You know you get used to it "

  28. Posted by Guest | August 2, 2012 at 2:02 PM

    Misery incorporated?

  29. Posted by J Meriwether | August 2, 2012 at 2:08 PM

    Just shut it down bro and start a new one.

  30. Posted by Guest | August 2, 2012 at 2:09 PM

    Serious question – Whats Knight CDS at right now?

  31. Posted by guest | August 2, 2012 at 2:17 PM

    Capital? Like all capital letters?

  32. Posted by Guest | August 2, 2012 at 2:19 PM

    5.2?

    –Guy who was way off on the FB guess the close contest we had a while ago but likes these sorts of contests

  33. Posted by guest | August 2, 2012 at 2:20 PM

    All I have to say is AWESOME picture Bess, Bravo!

  34. Posted by John | August 2, 2012 at 2:21 PM

    You know what I'm good at? One word: Bedazzaling. I could bedazzle the shit out of that knight's tunic and no one would even notice the $400MM loss.

  35. Posted by Mideval Times | August 2, 2012 at 2:27 PM

    Bess,

    I bet Matt was hot in that armor. How long did you make him lay in the grass like that? I hope you at least bought him a Mr. Softee afterwards.

  36. Posted by fdfdfd | August 2, 2012 at 2:30 PM

    One of the most entertaining interviews ever, what was that guy thinking?

  37. Posted by disclusre | August 2, 2012 at 2:40 PM

    does FB have any debt ?

  38. Posted by guest | August 2, 2012 at 2:40 PM

    the bonds are at .70

  39. Posted by HighFrequencyHater | August 2, 2012 at 2:43 PM

    With a slightly different name you can do at least 3-4 times. PalladinCap anyone?

  40. Posted by Thomas Joyce | August 2, 2012 at 2:45 PM

    Who wants a smoothie? I'm buying…

  41. Posted by Little Fritz | August 2, 2012 at 2:48 PM

    That is either impressive as hell (catching both movies) or scary (living in your mother's basement watching movies 24hrs a day).

    I'll go with the impressive, feeling generous.

  42. Posted by Little Fritz | August 2, 2012 at 2:49 PM

    tomorrow, .40.

  43. Posted by lolwut | August 2, 2012 at 2:50 PM

    Paramore, brother, Paramore.

    -another bad music fan.

  44. Posted by Will Smith | August 2, 2012 at 2:52 PM

    Me too!

  45. Posted by GUest | August 2, 2012 at 3:02 PM

    I'm pretty sure it's all in Starship Troopers.

  46. Posted by Guest | August 2, 2012 at 3:03 PM

    Hey!
    -Penn Central

  47. Posted by Guest | August 2, 2012 at 3:05 PM

    I've got a pair of jordache jeans with your name on it….

  48. Posted by ih8edjfkjr | August 2, 2012 at 3:13 PM

    I see the problem here, you've got yer culture of client focus and yer culture of compliance, but you forgot yer culture of not losing $440MM in 30 minutes. Get that and you're golden.

  49. Posted by A Dumbass | August 2, 2012 at 3:26 PM

    St. Louis, Misery

  50. Posted by SemGroup Advisor | August 2, 2012 at 3:28 PM

    If they would have held on to the positions just 2 weeks longer they would have been profitable.

  51. Posted by Bernie | August 2, 2012 at 3:28 PM

    No you are not.

    –Bernie

  52. Posted by Unemployed Trader | August 2, 2012 at 3:30 PM

    In Starship Troopers, why were the soldiers armed with weapons that fired thousands of rounds a minute but it took rockets to bring down the bugs?

  53. Posted by Tech N9ne | August 2, 2012 at 3:40 PM

    Kansas City, Misery > Saint Louis, Misery…..plain and simple.

  54. Posted by Guesto | August 2, 2012 at 3:43 PM

    UBS It Ain't Good?

  55. Posted by guest | August 2, 2012 at 3:44 PM

    BATS > BUGS

  56. Posted by guest | August 2, 2012 at 3:47 PM

    hes got a point

    just look at his vagina

  57. Posted by ShuttheFupDonny | August 2, 2012 at 3:51 PM

    "You're not good Noonan…you stink"

  58. Posted by UBS | August 2, 2012 at 3:54 PM

    Hey !

  59. Posted by Guest | August 2, 2012 at 4:12 PM

    spit out my red bull…lol…well done

  60. Posted by Guest | August 2, 2012 at 4:17 PM

    Soon, they ain't gunna have no nuttin'

    - UBS Honda Mechanic Quant

  61. Posted by Knight Risk | August 2, 2012 at 4:27 PM

    It was on in our var, get fucked

  62. Posted by Jay | August 2, 2012 at 4:35 PM

    I'd just sue the NYSE. Actually, NASDAQ. Sue NASDAQ.

    - UBS Equities

  63. Posted by You know | August 2, 2012 at 4:50 PM

    You heard me…I don't like losses sport. Nothing ruins my day more than losses

  64. Posted by 2StopShop | August 2, 2012 at 5:45 PM

    Can we get "Bonus Watch '12" for Knight Capital first year computer programmers?

  65. Posted by JWM | August 2, 2012 at 5:55 PM

    In our experience, two is really the limit.

  66. Posted by Bitchtern | August 2, 2012 at 7:46 PM

    If I was Joyce I would have been chasing them around the building with a fire ax.

  67. Posted by Kweku Adoboli | August 3, 2012 at 5:55 AM

    You need a system to do that for you ?

  68. Posted by Guestido | August 3, 2012 at 11:35 AM

    Watch your step – your throwing rocks at a legendary movie, friend.

  69. Posted by Guestido | August 3, 2012 at 11:39 AM

    misquote

  70. Posted by nelson muntz | August 3, 2012 at 1:31 PM

    HA HA

  71. Posted by ConsumerAlly | August 3, 2012 at 3:17 PM

    We're gonna need a bigger boat

    -TJ