Glitch causes big swings in some stocks

Specialist Peter Giacchi looks at the price of Knight at his post on the floor of the New York Stock Exchange, Wednesday, Aug. 1, 2012. Traders' attention was diverted to unusually sharp moves in a number of stocks shortly after the opening bell. The New York Stock Exchange says it is reviewing trades in 140 stocks. Trading volume was unusually high in the first half-hour of trading, and some investors suspected technical glitches. (AP Photo/Richard Drew)
August 1, 2012 12:19:12 PM PDT
A technical glitch at a major processor of stock trades caused wild swings in a number of stocks.

Some stocks moved dramatically shortly after the opening of trading on Wednesday. Wizzard Software, which closed Tuesday night at $3.50, shot above $14 in the first minutes of trading, according to data compiled by FactSet.

The glitch occurred at Knight Capital, one of the largest processors of stock trades. The company said in a statement that a "technology issue" had occurred in its market-making unit related to the routing of shares of about 150 stocks to the New York Stock Exchange.

Knight told its clients to send their orders away from its system and said it was reviewing the issue.

Knight's stock plunged $2.46, or 24 percent, to $7.87.


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