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Knightmare on Wall Street, The Rise and Fall of Knight Capital and the Biggest Risk for Financial Markets (ISBN 978-0-9896577-0-9), published on August 1, 2013, chronicles the rise and fall of Knight Capital. Knightmare on Wall Street is written by Edgar Perez, author of the previously released The Speed Traders.The book focuses on Knight Capital’s 17 years of existence as an independent company, from its founding by trading pioneers Walter Raquet and Kenneth Pasternak through the August 1, 2012 trading disruption to its acquisition by GETCO, transaction closed on July 1, 2013.[1] Contents [hide] •	1 Plot Summary •	2 Important Personalities •	3 References •	4 Reviews •	5 External links Plot Summary[edit source | editbeta] The book begins by reconstructing the events of the morning of August 1, 2012, during which the firm issued a number of erroneous orders into the market causing a major disruption in the prices of 148 companies listed at the New York Stock Exchange.[2] Throughout the morning, Knight Capital accumulated a $7 billion position it had to quickly unload not to break its capital limits. It was later discovered the disruption was due to an error in installing new software to participate in the Retail Liquidity Program sponsored by the New York Stock Exchange.[3] Founded by Ken Pasternak and Walter Raquet in 1995, Knight Capital was one of the companies that grew fast by riding the retail investing revolution during the Internet boom years and leveraging a series of changes in the structure of financial markets by regulators.[4] The Securities and Exchange Commission established a national market system which used technology to ensure that orders to buy and sell shares were sent to the best possible venue, either on-exchange or off-exchange such as broker-dealer internalization platforms and dark pools. The book recreates the sequence of events after the trading incident and the reactions of managers such as CEO Thomas M. Joyce, Steven Sadoff, and Michael Tobin, as well as regulators such as Mary Schapiro, former Chairman, Securities and Exchange Commission and Duncan Niederauer, Chief Executive Officer, New York Stock Exchange. The author analyses the major characters’ personalities in detail as, he claims, their decisions and indecisions played a major role in the error that ultimately cost Knight $461 million.[5] Knight was rescued with a $400 million investment by a consortium of clients and investment firms secured on August 6, 2012. Months later, a bidding war[6] between GETCO (one of the original investors) and Virtu Financial ensued to acquire the company, the details of which are presented in the last chapters of the book.[7] Important Personalities[edit source | editbeta] Kenneth Pasternak, Co-founder and former Chief Executive Officer, Knight Capital Walter Raquet, Co-founder and former Executive Vice President, Knight Capital Thomas Joyce, former Chairman and Chief Executive Officer, Knight Capital Richard Handler, Chief Executive Officer, Jefferies Joe Moglia, Chairman, and Fred Tomczyk, Chief Executive Officer, TD Ameritrade Daniel Coleman, Chief Executive Officer, GETCO Bill Ford, Chief Executive Officer, General Atlantic Vincent Viola, Founder and Chief Executive Officer, Virtu Financial Dick Grasso, former Chairman, New York Stock Exchange Kenneth Griffin, Founder and Chief Executive Officer, Citadel Mary Schapiro, former Chairman, Securities and Exchange Commission Duncan Niederauer, Chief Executive Officer, New York Stock Exchange Robert Greifeld, Chief Executive Officer, NASDAQ Jimmy Dunne, Head of the Executive Committee, Sandler O’Neill References[edit source | editbeta] 1.	^ History KCG, www.kcg.com/about/history 2.	^ Knight Capital Trading Disaster Carries $440 Million Price Tag, www.forbes.com, Aug 2, 2012 3.	^ Did Goldman Sachs’ Trading Mishap Resemble Knight Capital? foxbusiness.com, August 21, 2013 4.	^ National Market System Plans www.sec.gov, Aug 29, 2005 5.	^ Searching For a High-Frequency Speed Limit www.bloomberg.com, August 19, 2013 6.	^ Knight Capital Bidding War Begins www.thestreet.com, Nov 28, 2012 7.	^ Getco to buy Knight Capital in $1.4 billion deal www.reuters.com, Dec 19, 2012 Reviews[edit source | editbeta] Trading firms would do well to heed lessons in testing and crisis management modernfinancereport, Aug 5, 2013 Knightmare on Wall Street Book Review: How Knight Capital Fumbled its Best Opportunity to Shine UltraHighFrecuencyTrading.com, Jul 31, 2013 External links[edit source | editbeta] •	Tech Glitches the New Normal in Trading? www.foxbusiness.com, Aug 22, 2013