ML-Implode News - Electronic Trading Glitches Shake Market Confidence

This time around -- insofar as it's possible to piece together what happened -- it seems as if the computers ran amok, sticking Knight not only with damage to its reputation on Wall Street but with a loss that some have estimated could be as high as $300 million.
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It's not that they mind the computerized trading, the human traders insist. It's just that the two systems, human and cyber, don't have to play by the same rules. "If a human being tried to do what these systems routinely do -- test the market to see how people will respond by submitting orders and then pulling them back in milliseconds -- then the SEC would be all over them" for violating trading rules, says one veteran trader and portfolio manager.

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Electronic Trading Glitches Shake Market Confidence