Tag Archive for '$440 million'

Another Bank Playing ‘Russian Roulette’ with Software

In my Blog the other week (“Software is Everywhere – Let’s Make Sure it Works“) I discussed the dangers that delivering bad software can bring.  Unbelievably another Bank is at it.  This time it’s Knight Frank, the US-based global financial services firm.  With its high-frequency trading algorithms Knight was the largest trader in U.S. equities on NYSE and NASDAQ.

So you’d think they would take a lot of care and attention to deliver software correctly. Apparantly not.

On August 1, 2012 Knight Capital put into production some “bad code”.  This caused a major disruption in the prices of 148 companies listed at the New York Stock Exchange, for example, shares of Wizzard Software Corporation went from $3.50 to $14.76. Knight Capital’s stock price to collapse and the company took a pre-tax loss of $440m sending shares lower by over 70% from before the announcement.

4 Days later the company managed  to raise around $400 million from half a dozen investors just to stay in business.

The cause? Well according to Bloomberg it “stemmed from old computer software that was inadvertently reactivated when a new program was installed”   Essentially they rushed through code and it was buggy.  Modern (agile) development practices does not mean cutting corners – that’s like playing Russian Roulette with your company.  Just ask the Board at Knight Frank – they lost 2 years of revenue in less than an hour…

 

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About David Richards

David is CEO, President and co-founder of WANdisco and has quickly established WANdisco as one of the world’s most promising technology companies.

Since co-founding the company in Silicon Valley in 2005, David has led WANdisco on a course for rapid international expansion, opening offices in the UK, Japan and China. David spearheaded the acquisition of Altostor, which accelerated the development of WANdisco’s first products for the Big Data market. The majority of WANdisco’s core technology is now produced out of the company’s flourishing software development base in David’s hometown of Sheffield, England and in Belfast, Northern Ireland.

David has become recognised as a champion of British technology and entrepreneurship. In 2012, he led WANdisco to a hugely successful listing on London Stock Exchange (WAND:LSE), raising over £24m to drive business growth.

With over 15 years’ executive experience in the software industry, David sits on a number of advisory and executive boards of Silicon Valley start-up ventures. A passionate advocate of entrepreneurship, he has established many successful start-up companies in Enterprise Software and is recognised as an industry leader in Enterprise Application Integration and its standards.

David is a frequent commentator on a range of business and technology issues, appearing regularly on Bloomberg and CNBC. Profiles of David have appeared in a range of leading publications including the Financial Times, The Daily Telegraph and the Daily Mail.

Specialties:IPO’s, Startups, Entrepreneurship, CEO, Visionary, Investor, ceo, board member, advisor, venture capital, offshore development, financing, M&A