High Frequency Traders Lost 20 Million In Facebook IPOMay 27, 2012 3:33 pm
“Citigroup’s Automated Trading Desk had trading loses of $20 million on Facebook’s (FB) initial public offering, according to Reuters.
ATD, which Citi (C) bought in 2007, is a firm that deals in computer-driven, high frequency trading. It doesn’t make robot traders … yet.
“We taught computers to trade like humans, at unprecedented speeds, with no coffee breaks,” ATD said on its website.
Despite their speed and superior work ethic, these computers were not smart enough to avoid being caught up in the IPO that some are now calling FaceBomb.
To be fair to the robots, some humanoid trading firms also took a bath on the social network’s ill-fated debut as a public company. Knight Capital and Citadel Securities both reported losses of $30 million to $35 million.”
Statistics Source: CNN Money