Financial Business Review: Knight Capital’s MALFUNCTION, Morgan Stanley’s Trading SHAKE-UP

Here are Thursday’s top stories:

Knight Capital Group, Inc. (NYSE:KCG) is said to have held about $7 billion of stocks at one point during its information tech malfunction of last week, but it did sell $2.4 billion by the end of the day, according to the Wall Street Journal. The firm then divested the rest of the portfolio to Goldman Sachs after it rejected an offer from UBS, but it still took a hit totaling $440 million from the fiasco.

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Some former lower-level employees at UBS AG (NYSE:UBS) have been offered immunity from United States prosecutors from criminal charges in return for their assistance in the Libor inquiry, says the Wall Street Journal. However, UBS, Deutsche Bank AG (NYSE:DB), and Barclays PLC (NYSE:BCS) have made arrangements to co-operate with authorities and these deals offer no protection to the current staff involved.

Morgan Stanley (NYSE:MS) is stepping up its bond and interest-rate trading operations so as to quicken current sluggish activity and to get ready for the time when such products will trade more like stocks. The result is machines supplanting traders.

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