03.08.2012 Software bug is causing a $ 440 million loss

Knight Capital Group Inc. suffers a loss in Algo Trading of consirable $ 440 million. Algo trading is an automated form of trading which is based on predefined algorithms. The trading models highly depend on speed and they are able to execute an consirable number of transactions in a very small time span. If those models contain errors, their monetary effects can be far beyond the losses caused by a typical human error, since their results are input four the next trades executed by such trading platforms. 

According to scientists (see Reuters.com) the problem was enlarged by a contagion effect. This operational risk event caused a loss of about four times the 2011 net profit. The company is currently looking for fresh money for which it has a short period of a couple of days. Although people speak about an "anomaly" the regulators already announced further regulatory requirements to prevent such incidents.

Even the CEO of NYSE acknowlegded that "speed is not always better".

for further reading: http://www.newsmax.com/StreetTalk/Knight-capital-loss-software/2012/08/04/id/447567

11.06.2011 Information Systems of IMF hacked

according to ARD (Germany) the Information Systems of IMF were hacked. It is could not be excluded that governmental organisations were hacking IMF' systems. US FBI is currently investigating the case.

for further reading: http://facts.ch/articles/6718810-report-imf-hacked-by-foreign-government