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FBN’s Charlie Gasparino on the potential losses from Knight Capital’s trading glitch.
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We have got more breaking news on the Knight capital trading outlets today telecast rate adjustment out of more explicitly -- putting out what -- you know a lot of people the markets right now are trying to assess the amount of damages just how much.
You know late ninety's gonna lose on on this on this -- -- debacle the market is Thomas.
It's above 200 million is that so much money's been taken off the market cap for -- -- -- -- O'Neal's gonna put out his analysis shortly I hear.
But here's what I'm -- first of one of the major determining factors and figure out how much I would lose these you know how many trades -- -- broke to say.
These are you would you meet the bad trade you don't have to pay for.
And what sources tell the Fox Business Network is the SEC right now is determining.
Which of those broken trades and is now -- from what I understand a 138.
Stocks.
Not the original 1410140.
Or so 145.
They've canceled they've canceled all the trees and -- -- ample stocks but still it's really difficult to figure out on those.
And those 138 how many broken trees because there's specific rules here the SEC may have very little leeway.
Debris trades and these things -- promulgate rules I from what I understand has been probably fairly recently.
It's it's -- from what I understand it's -- -- indeed sort of face of the -- the FaceBook IPO.
Debacle that there are certain ways you can break trades in certain -- you can't.
And the SEC would like to very trades from what I understand because they don't want to put that -- hurt night financially.
But there's certain rules so depending on those brokered trades what -- -- understanding is that that the total losses at night.
Could go is -- 300 million dollars we should point out this is a purely a guesstimate is what people -- -- inside.
The the regulatory board rooms and a look at this and there's a lot of regulators look at this -- -- to grab the SEC's evolve as we first reported the New York Stock Exchange.
So -- inside those rooms when people -- -- the meeting potential losses.
The high -- I'm hearing now is to -- -- but we should point out also.
That's a high end.
We don't know -- some possible don't know because we don't know which trades -- being broken if the SEC.
Finds that he can basically break all the trades -- override the rules that are gonna get -- in existence.
Well guess what that would be a pretty good thing for Knight securities they wouldn't lose as much money.
We should point out that the SE CB and why is he could determine these broken trades.
There have been reports about this -- -- at the -- the day -- tell me it's at the end of day or early tomorrow it's not the clearly not gonna do it.
-- stand by either try to get it done -- tonight I don't think they're gonna do by the end of the trading day but maybe the ended today today.
Or or early tomorrow -- -- scheduled there on.
There's been a report that there's some sort of conference call going on its imminent from what I understand has been a -- a -- and an ongoing conference call and isn't going -- all day this is the major sort of obsession.
At the -- New York Stock Exchange today and the NYSE because if you look at a stock chart of of of night and we should put it up night is a publicly traded company that stock is down.
Somewhere close to 25% that's that by the -- that's lower than it was early today what is it down now my glances I'm a four sided.
Yeah without -- it first went almost 18% Charlie almost 28% almost what do you think it almost a thirty.
30% decline -- big -- that means the market now.
Is pricing in that upper number that we just pointed out that 300 million dollar number.
-- -- -- see what Richard pedo at Sandler O'Neill there's one analyst that -- the -- -- space virtual -- probably the best in the business.
He's gonna come out with something you know based home you know when I talk to -- you know momentarily.
So that'll be interest -- but this is the big question right now how much.
Do they -- how much are they gonna lose.
And I'll -- it would it would be just a look at that the balance sheet you know this is a company that you know if it was -- -- a nine dollar eight dollar ninety stock before today.
Now to seven dollar stocks of this is pretty serious stuff we should urge caution in this you know.
You know when you estimate these numbers out I would say Tom Joyce is one of the best managers in the business has been trading got -- trading stocks for years worked at Merrill Lynch.
Really good guy Smart man they do have evil management at this place.
I don't this is not -- Jon Corzine MF global situation where you had people that that clearly don't know what they're doing.
We should also point out it's kind of easy to do to do a trading -- we of that securities has told us on the record this is -- -- hacking situation looks like it's an error.
Yeah I talk to traders today about you know how easy is it to screw up one of these things that quote unquote fat finger screw up -- Not that difficult man apparently put of one of these algorithms -- you think it's gonna end in two weeks and it -- -- -- today and traits they have -- There's ways to screw this up that's pretty easy.
Which also point out that we don't know exactly.
What causes people talk about trading -- people talk about system errors.
You know what does all I mean they're not defining apparently our problem now I don't know -- what -- Centre right.
I mean -- -- a software problem on top of somebody put in something wrong say -- -- we should point out but below that number I've pointed out.
The 300 it's an interest in number among Iraqi I've just don't it's bouncing around and it's not in in in those rooms that they're talking about this.
It all depends on how many trades get killed or as a putting in trading language.
-- Nice when Charlie Gasparino thank you very much for more breaking news on night capital in great stuff from tried today obviously is trying to figure out exactly what this is gonna -- capital budget can see its cost them lot.
And their share value --
