Trading systems broke down at 2 firms during "flash crash": WSJ

[cory777]

Source: WSJ/Reuters

(Reuters) - Trading systems briefly broke down at hedge fund firm Citadel Investment Group and trading firm Knight Capital Group Inc (NITE.O) when the stock markets plunged on May 6, the Wall Street Journal said.

Citadel stopped taking orders for a number of securities, soon after the record fall, the Journal said, citing an internal email and people familiar with the matter.

Citadel had asked clients to route orders elsewhere, the paper said. Electronic trading service provider Knight Capital was so flooded with orders that one of its computers "just blew up," the paper said, citing a person familiar with the matter.

The breakdown led to a slight delay in handling orders and affected less than 1 percent of the Knight Capital's orders, the person said.

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