Knightmare on Wall Street Said to Scare Bitcoin Digital Currency
Market From $1000 to 10 in 2013
Edgar Perez, Author, The Speed Traders, and Course Director, The Speed Traders
Workshop, Introduces Knightmare on Wall Street, The Rise and Fall of Knight Capital
and the Biggest Risk for Financial Markets, a Behind-the-scenes Look at Knight
Capital's 17 years of Tumultuous Existence as an Independent Company.
New York, NY, USA (December 24, 2013) --
As indicated by The New York Times' Nick
Bilton, bitcoin, the digital currency that has
captured attention around the world, exploded.
By November, it had skyrocketed from a
fraction of a penny to $1,242, roughly the price
of an ounce of gold. It has been a wild, wild
ride: up and down, down and up. Everyone
seems to be wondering what this crazy new
thing might mean. The end of government
control over money? The start of an
international crypto-currency? Is Knightmare on
Wall Street coming for this market?
Bitcoins are mined according to a set of algorithms. Essentially, computers solve some math
problems and generate bitcoins. The coins are stored in, and traded among, digital wallets.
People can buy real things with them, at least from people who accept them, or, as many
people seem to be doing, sit on them in hopes the price will keep rising. Per the algorithms,
mining bitcoins becomes more difficult over time. Only about 21 million of them can ever be
created — which is why so many people have been chasing after them. Bitcoins are now
accepted as payment at almost a thousand retail outlets and websites, including OKCupid,
Reddit, and Pizza Rodi in Montreal. But what has really grabbed attention is how volatile the
price has been. The value has gyrated wildly. In the last month alone, the bitcoin market
capitalization has swung between $14 billion and $7 billion.
However, Mark Williams of Boston University has insisted that the value of a Bitcoin will pop,
falling as low $10 next year. Others say it is all just another bubble. Is the bitcoin market reaty
to experience its own version of a Knightmare on Wall Street? This is the new book by Edgar
Perez, former McKinsey consultant and celebrated author of The Speed Traders, now
available in his website http://www.MrEdgarPerez.com with immediate shipping now available
Knightmare on Wall Street provides a fascinating account of what it took to elevate the firm to
the cusp of the retail investing revolution of the late 1990s, to struggle through booms and
busts, and to bring the firm down, to end up ultimately being ignominiously bought up by a
competitor. Readers will discover a thrilling minute-by-minute account of the terrifying hours
following Knight Capital's August 1, 2012 trading debacle, with news-breaking research
regarding the firm's 17 years of tumultuous existence as an independent company.
At 9:30 A.M. on August 1, 2012, right after the markets opened for the day, Knight Capital
began issuing an unprecedented number of erroneous orders into the market, due to an error
in installing new software. Knight Capital announced later a staggering loss of $440 million.
What followed after this shocking announcement were several rounds of desperate
conversations with a number of vulture players who had smelled opportunity and were
readying themselves to pick up bargain-priced pieces. On August 6, 2012, Joyce confirmed
that Knight Capital had struck a deal with Jefferies, TD Ameritrade, Blackstone, GETCO,
Stephens, and Stifel Financial, staving off collapse days after the trading mishap.
Perez is widely regarded as the preeminent global expert in the specialized area of high-
frequency trading. He is author of The Speed Traders, An Insider's Look at the New High-
Frequency Trading Phenomenon That is Transforming the Investing World, published in
English by McGraw-Hill Inc. (2011), Published in Mandarin by China Financial Publishing
House (2012), and Investasi Super Kilat: Pandangan Orang dalam tentang Fenomena Baru
Frekuensi Tinggi yang Mentransformasi Dunia Investasi, published in Bahasa Indonesia by
Kompas Gramedia (2012). Perez is course director of The Speed Traders Workshop, How
High Frequency Traders Leverage Profitable Strategies to Find Alpha in Equities, Options,
Futures and FX (Hong Kong, Sao Paulo, Seoul, Kuala Lumpur, Warsaw, Kiev, New York,
Singapore, Beijing, Shanghai). He contributes to China's International Finance News and
Sina Finance and The New York Times.
Edgar has been interviewed on CNBC's Squawk on the Street, Worldwide Exchange, Cash
Flow and Squawk Box, FOX BUSINESS's Countdown to the Closing Bell and After the Bell,
Bloomberg TV's Market Makers, CNN en Español's Dinero, Sina Finance, BNN's Business
Day, CCTV China, Bankier.pl, TheStreet.com, Leaderonomics, GPW Media, Channel
NewsAsia's Business Tonight and Cents & Sensibilities. In addition, Edgar has been globally
featured on FXFactor, Columbia Business, OpenMarkets, Sohu, News.Sina.com, Yicai,
eastmoney, Caijing, ETF88.com, 360doc, AH Radio, CNFOL.com, CITICS Futures, Tongxin
Securities, ZhiCheng.com, CBNweek.com, Caixin, Futures Daily, Xinhua, CBN Newswire,
Chinese Financial News, ifeng.com, International Finance News, hexun.com,
Finance.QQ.com, Finance.Sina.com, The Korea Times, The Korea Herald, The Star, The
Malaysian Insider, BMF 89.9, iMoney Hong Kong, CNBC, Bloomberg Hedge Fund Brief, The
Wall Street Journal, The New York Times, Dallas Morning News, Valor Econômico, FIXGlobal
Trading, TODAY Online, Oriental Daily News and Business Times.
Media Relations Coordinator
Knightmare on Wall Street