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by Devilboy 5073 days ago
If you sell stock to yourself... why even bother to go through the exchange? Why would the exchange even allow such trades?
1 comments

Knight has different programs running. It was handling >10% of all NYSE, so it must have been running a lot of servers. When the berserk algorithm wanted to buy or sell a stock where Knight was the only "market-maker", another Knight server would usually intercept the order after it had been posted on the exchange. Here's one way it might have happened: http://www.nanex.net/aqck2/3525.html