An Ignored Tumble From Grace

 | Aug 03, 2012 | 7:14 AM EDT
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Could this market be so powerful -- or so foolish -- as to ignore the possible demise of Knight Capital (KCG)? This is a firm that's integral to much of retail trading, and one that is also very important in the ETF world. Knight is a company that provides such fast execution that it is used by many, many firms; it's just that most people don't know it.

The idea that Knight is fighting for its life, and that nobody seems to care, is a sign of incredible strength or incredible foolishness. Who is on the hook to Knight? What orders haven't been processed? Who has credit agreements? Who will get hurt?

Maybe it doesn't matter.

Maybe Knight is like a dry cleaner or something with no credit line, no inventory and just a building with some people in it.

It could be.

But it's doubtful.

One thing is for certain: The Europeans have never heard of it.

They are loving this morning.

But the corollary is also true: When have they ever known anything?

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