Tuesday, August 14, 2012

Trading rules sealed Knight loss

Welcome to the morning roundup. Here's a look at today's banking and finance headlines. 

Knight loss. Regulations enacted after the May 2010 flash crash sealed Knight Capital Group Inc.'s $440 million loss this month, Bloomberg reports. Those rules, meant to protect investors, meant Knight couldn't cancel its unintended orders. 

Faster trading. Today's stock market is faster than ever, thanks to advances in trading technology - but new research shows the benefits to investors have stalled or started to reverse, the New York Times reports. 

Euro zone shrinks. Germany and France avoided shrinking in the second quarter, but the euro zone as a whole fell back into contraction, the Wall Street Journal reports. 

New service at JPM. JPMorgan Chase & Co. will allow futures and swaps customers to house excess collateral in a separate bank account, Bloomberg writes. The new service is meant to reassure investors after losses at MF Global Holdings Ltd. and Peregrine Financial Group Inc. 

Stocks rise. Stocks climbed this morning on stronger-than-expected retail sales data, suggesting improving consumer spending, Reuters reports.