"This is really a wake-up call," David Whitcomb, founder of Automated Trading Desk LLC, a Knight rival bought by Citigroup Inc. for $680 million in 2007, said in a telephone interview. "They made one obviously terrible mistake in bringing online a new program that they evidently didn't test properly and that evidently blew up in their face."
Last week the Wall Street firm of Knight Capital lost $440 million in 45 minutes resulting in a 50% share drop and the company's potential bankruptcy. Even after an influx of capital, the shares continue to fall. How did this professional company manage to achieve this unimaginable feat? The company blames the trading glitch on the installation of new trading software.
What could they have done to prevent this big costly glitch? ITSM best practices to seamlessly manage software implementation can be found in ITIL. If your IT management team has not implemented an ITIL-based solution, you should explore the options today.