This post isn’t about e-discovery or computer forensics. Not at all. But as it’s about the near-fatal, self-inflicted wound Knight Capital suffered from a software snafu early on 8/1/12, it will touch on the immense power of technology
Doesn’t the whole fiasco bear an uncanny similarity to the old Matthew Broderick movie, “War Games,” where the NORAD W.O.P.R. computer thinks its being tested in a bracing game of “Global Thermonuclear War” but is actually connected to live warheads poised to annihilate hundreds of millions? Indications are that Knight Capital’s shiny new software was running test trades in the 24 hours after its installation, but no one at Knight Capital realized that W.O.P.R. was actually executing those trades on the New York Stock Exchange! Forty-five minutes and $440 million in losses later, the Big Board interceded, perhaps sparing us all from another financial meltdown.
Someone in IT needs to start packing up his or her Star Trek bobbleheads. Continue reading




