The August 1 trading glitch that punched a $440 million hole in Knight Capital Group Inc's balance sheet and nearly sank the firm will likely prompt a review of the rules that govern electronic trading, Knight's chief executive said on Tuesday. The U.S. Securities and Exchange Commission will likely reexamine rules on how errors are dealt with by trading firms and exchanges, as well as the circuit breakers that are tripped by unusual volume and so-called "kill switches," which could shut down order flow, Knight CEO Thomas Joyce said. Two days after Knight's near fatal trading glitch, the SEC said it would host a discussion with industry players and experts on Oct. 2 that would look at how to prevent and handle technical glitches. "The silver lining is that, at the end of the day, I believe some regulatory changes will be made and there are probably only two or three of them that need to be considered, but it will make the system stronger," Joyce said at the Barclays
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